“The most immediate market is for the older generation looking at downsizing, moving in or moving next to their family.
“But on the flip side, you’ve got the younger generation who can’t get on the property ladder but also want to be away from their parents to a certain extent. It does and can work for that too.”
“If you look at it from the older angle… If mum’s got a £500,000 house she’s had for 30 years, rather than giving that to a care home as an ongoing rental, it makes sense to liquidate that equity and consolidate those funds into an annexe in the garden that mum then ends up having.
“An annexe is £100,000, she’s got a £500,000 home and then she’s got £400,000 from an equity release so it makes financial sense.”
There are other financial benefits too. An annexe is estimated to add as much as 20 to 30 percent to the value of a property, according to Checkatrade.
For those struggling to afford childcare, having an annexe built for their parents on a property could be a real lifeline. It could also save money in terms of fuel costs as long journeys are cut back in favour of a trip down the garden.
An annexe could also be “significantly” cheaper than a home to heat. A modern, smaller annexe is likely to be a lot cheaper to run than a large, Victorian building, for example.
But one of the most important factors for annexe owners is conserving a sense of independence for the person living in the annexe while keeping them close by.
READ MORE: Couple who win £3m mansion selling for £4m weeks later