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New horizons for UK’s granny annexe industry in 2021

New horizons for UK’s granny annexe industry in 2021

2020 has been a complicated year. It has also been a year that brought families together and made us cherish our loved ones even more. It caused many lifestyle changes, not all of them pleasant, but now, with 2020 behind us, we’re hoping for a fresh start and many beautiful moments with friends and family.


For 2021, experts forecast a rise in the already major multigenerational living trend in the UK, which is one of the biggest driving factors behind the popularity of granny annexes. Granny annexes have become one of the biggest real estate trends in recent years, and the industry is on track to grow even more in 2021.


One study found that around 10,000 people submit applications to build annexes every year, and 82% of applications are successful. Most homeowners want to build an annexe from scratch, but there are also cases when they may choose to convert an existing structure, such as a shed or another building that was already there.


Let’s have a closer look at reasons why more British homeowners are expected to start renovation projects involving granny annexes in the year to come.



Multigenerational living is on the rise in the UK.

Although 2020 played a huge role in the rise of multigenerational living, with families choosing to welcome their senior parents back for health and safety reasons, the UK already had one of the highest rates of multigenerational households. To be more precise, one-third of UK households were multigenerational in 2019, and senior relatives accounted for 14% of these households.


Being self-contained spaces, granny annexes allow seniors more independence, but they can still be looked after, and they’re less likely to feel lonely and isolated. They can also spend more time with grandchildren, which is beneficial for the entire family.


Despite the term “granny annexe”, this home structure is also perfect for young adults who move back in with their parents but need their personal space.




A granny annexe can boost the property price.

When embarking on a major home renovation project, families are not only looking for an immediate boost in comfort, but also a boost in curb appeal and return on investment, both of which granny annexes offer. According to a 2019 study, three- and four-bedroom homes with a granny annexe can be sold for prices up to 27% higher than homes without.


In an uncertain property market, granny annexes provide considerable savings.

The COVID-19 crisis has made a significant impact on the UK’s economy and property market, and the outlook for property prices is still uncertain. Many young adults who wanted to move out are postponing their plans due to high property prices or closed universities. What’s more, families who were considering retirement communities for elderly relatives realised that the costs are too prohibitive for the current economy. For both cases, a granny annexe is a more affordable option.

12% of British homeowners said that they want to develop a granny annexe in 2021. If you have been thinking about this home improvement, we’ll gladly guide you through your options and help you build an annexe that is both stylish and practical.


Please contact us on 0800 334 5774 (Monday to Friday 09:00 – 17:00) in order to book a time and date for your free site survey. Or please complete our FREE site virtual survey website form (CLICK HERE) :

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