• Despite the first lockdown halting planning and building, UK councils still received nearly 9,000 planning applications for garden annexes in 2019/20
• The average annexe costs nearly £7,000, but can add as much as £91,000 on to the price of a property
• The pandemic has had a direct impact on appetite for annexes – so that other family members can move in to help with childcare, and become part of the same household, and to provide space for home schooling

Councils across the UK received nearly 9,000 applications for new and converted annexes in 2019/20, the equivalent of over one every hour, or 25 per day, reveals new research¹ from Churchill Home Insurance. This was a fall of just 11 per cent compared to two years previously and highlights how popular these structures are, as this timeframe includes the first lockdown period when building work ground to a halt.

The impact of another national lockdown, with many more people working from home, and children once again needing to be home schooled, may explain why one in 18 households (six per cent) hope to create a garden annexe in their home this year².

With the average annexe costing just under £7,000 to convert or build, homeowners could see a significant return on investment, both in terms of space and value. Separate research by the insurer found they can add as much as £91,000 onto the price of a property, as well as around 20 per cent to the overall square footage³. Based on analysis of average property prices and floor space, this means that a garden annexe is worth approximately £2,360 per square metre.

Half of those that already have an annexe, or are currently planning to build one, say that the pandemic and lockdown restrictions have had an impact on their plans for this. The main three reasons were due to people wanting other family members to move in to help with childcare (17 per cent), needing a space for home schooling (16 per cent) or because they wanted other family members to move in to become part of the same household (16 per cent).

Annexes can be used for multiple purposes, another reason why they are so popular with families. While the main uses are as breakout spaces (28 per cent) and living areas for children (16 per cent) and parents (15 per cent), they are also used as a leisure space (13 per cent) such as a bar, and a living area for grandparents (10 per cent).

Table one:  Reasons people want a garden annexe due to the coronavirus pandemic

Source:  Churchill Home Insurance 2021

Pritpal Powar, Head of Churchill home insurance, said: “We expect more from our homes now than ever before. As well as places to relax, they are offices, businesses, schools and gyms. These structures are often relatively cost effective and can quickly add both space and value to a property, so it is no wonder so many of us are looking at how we can create more space without spending huge amounts of money on building extensions or moving. 

“Anyone considering constructing or converting a garden annexe needs to inform their insurer that work is taking place and consider the additional building and contents that they may need on their policy once the work is complete.”

In the last year, planning applications for new garden annexes were more successful than applications for converted ones, with three quarters (75 per cent) of new annexe applications approved by councils, compared to 67 per cent of conversions. Nearly four fifths (79 per cent) of all planning applications for annexes to UK councils in 2019/20 were for new constructions, with the remaining 21 per cent for conversions

-   ENDS -

Notes to Editors

¹ Freedom of information Act request issued to all UK councils on 16^th October 2020.

² Research conducted by Opinium among a nationally representative sample of 2,001 UK adults between 23^rd-27^th October 2020

³ Analysis of Zoopla property data, October 2020. 100 property listings that include an annexe were analysed from 11 major cities around the UK, focusing on property value, square footage of living space and square footage of annexe space. Average cost of annexe space was then calculated by working out the cost per square foot in the property and applying it to the annexe. Average city asking prices for similar properties were also recorded to give a comparison between properties with and without annexes.

 

For further information please contact:

Chelsey Wheeler
Churchill PR Manager

Ext: 01651 832 095

Mobile: 07920080956

[email protected]

 

Churchill

Founded in 1989, Churchill is now one of the UK's leading providers of general insurance, offering car, home, travel and pet insurance cover over the phone or on-line.

Churchill general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.  

Churchill and U K Insurance Limited are both part of Direct Line Insurance Group plc.  

Customers can find out more about Churchill products or get a quote by calling 0300 200 300 or visiting www.churchill.com