Adding an annexe to a home can increase its value by an average of £129,300, according to new research from eXp UK, highlighting the growing appeal of flexible living space among buyers.
The study analysed property listings across England, comparing sale prices of homes with annexes against similar properties without them. It found that annexes consistently attract a substantial premium, reflecting demand for self-contained accommodation that can adapt to modern living needs.
Annexes are typically separate living spaces with their own entrance, often including a bedroom, bathroom and kitchenette. They have become increasingly popular with buyers looking to accommodate elderly relatives, adult children, guests or even generate rental income, while maintaining privacy for both occupants and homeowners.
The research shows that the value uplift varies by region. Homes in Yorkshire and the Humber recorded the highest percentage increase, with annexed properties worth 24.3% more than comparable homes without one. This equates to an average price premium of £110,500.
In both the West Midlands and the North East, annexes added a similar proportional boost of 23.9%, translating to average uplifts of £135,095 and £101,252 respectively. The South East delivered the largest cash premium, with annexed homes commanding an additional £167,500 on average, representing a 21.4% increase in value.
London saw a lower percentage uplift of 10.3%, but this still equated to a sizeable £107,550 premium, reflecting the capital’s already high property prices.
Adam Day, head of eXp UK, said annexes offer an attractive balance between shared living and independence. He noted that buyers increasingly value the flexibility an annexe provides, whether for multigenerational living or hosting family and friends, and that this demand is clearly reflected in the prices buyers are willing to pay.
With space and adaptability high on many buyers’ wish lists, the findings suggest that annexes remain one of the most effective ways for homeowners to add significant value to their property, particularly in regions where affordability and family living are key drivers of demand.
