The granny flat ‘boom’ and what caused it


Thousands of people are turning to annexes to house relatives as property prices soar in the UK. Annexes are being used to house elderly relatives, young adults living at home, au pairs and guests as people look to new ways to make the most of their homes and living spaces.


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Properties with an annexe have grown by a third in recent years partly fuelled by a tax break for houses with ‘granny flats’. It is now much more normal to see three generations or even more living under the same roof, with families finding that it saves money to house elderly relatives in need of care and young people struggling to get a foot on the property ladder due to high house prices.

Multi-generational living

As people are now living longer, there are more elderly people who need care. It is cheaper to look after the elderly at home than pay for permanent care home places. However, even without money worries, people are still turning to multi-generational living for pleasure reasons. It lets families spend more time together and enjoy closer relationships.

Tax breaks

Over 9000 annexes have been built in the last two years across England and Wales equating to a 39% rise. Before 2014, annexes with a fitted kitchen and bathroom would be subject to full council tax charges but they now get a 50% discount, provided the resident is a family member. Before 2016, you would also have to pay a 3% stamp duty surcharge if buying a home with a granny annexe, but this rule has now been scrapped –

Growth in annexes

A granny annex, such as those provided by, is a great idea for providing financial savings and closer relationships while still letting the residents maintain their independence and personal space. Both the main home owners and the annexe residents can enjoy the perfect compromise in living arrangements.

Many grandparents only see their grandchildren a few times each year, with 83% of grandparents saying they want to see them at least once each fortnight. Four in five adult children wish they could spend more time with their grandparents. These statistics show how useful granny flats can be in bringing families closer and just why there are now 33,000 annexes used as additional living spaces right now across England and Wales.

Written by suNCh8

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