Can an annexe benefit young people?

Consumer price inflation has risen sharply, within 12-months the growth rate reaching 7.9% for the Consumer Prices Index including owner occupiers’ housing costs (CPIH) in May 2022, and 9.1% for the Consumer Prices Index (CPI) in the same month.

Unfortunately, it is no secret that the cost of living is rocketing up, making it increasingly difficult for young adults to secure their own properties.

This is proven by the number of 20 to 34 year- old’s living at home increased by a third between 1998 and 2017 and has steadily risen, also meaning the popularity of a garden annexe has followed this trend.

In May, Conservative MP Jackie Doyle-Price suggested that the government should incentivise granny annexes; and ensure that young people have greater access to the wealth in their parents’ homes.

If you’re considering the financial benefits of young people living in an annexe, here are some of our favourites.


1. Save for a deposit


Having an annexe constructed within your garden will allow adult children to continue to live with their parents while saving for a deposit for a house of their own.

The average UK property price in April had risen by 10.8% from April 2021, additionally with the average homeowner experiencing an almost £50,000 increase in property-value over the last two years.

The Real Estate industry have recognised this boom in annexe popularity. Since it first launched back in May 2018, the three most popular search terms using Rightmove’s Keyword Sort feature have been garage, annexe, and acre.

One study in 2021 found that 10,000 people submit applications to build annexes every year with a 82% success rate.


2. Independent Living


For most young people it is a long term goal to move away from home and live independently.

Moving back with parents, for some, can feel like a step backwards and some studies have shown higher levels of depressive symptoms can occur.

Everyone no matter what age needs their privacy.

Furthermore, it assures the parent that they won’t be taken advantage of like being used just for the cooking and cleaning. Gaining the correct planning permission will enable people to have a kitchenette, washing room and bedrooms and allow young adults to gain great life skills.


3. Other Financial Benefits


It’s estimated that an annexe could add up to 20-30% onto the market value of a given property; making it a solid investment down-the-line.

Another scenario maybe the children originally residing within the annexe move into the house and parents within the annexe. Cost of Care Homes can be £1,000 per week or more in some areas in the UK. So an annexe costing less than £100,00 it will typically pay for itself in less than 2 years.

Council Tax is required for the granny annexe, the good thing is most councils will offer a 50% discount on the tax bill for your annexe if a relative is living there.

Rightmove’s property expert Miles Shipside commented: “Regarding annexes, some families are seeing the opportunity of running one larger property rather than two. An annexe for a teenager has its benefits as it offers space, responsibility and independence as they have their own quarters and keeps their noise at a distance from their parents.

NAPC have over 15 years’ experience within the planning industry and endeavour to deliver the best, robust case to get your project the approval it deserves.

Get In contact today and we can talk you through the next steps to achieving your project.



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