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How to create a granny annexe that works for everyone

9 min read
Living room with sloped ceiling and VELUX roof windows, family seated on sofa.

A granny annexe can give you the best of both worlds: keeping family close whilst giving everyone their own space. From planning permission to design and budget, here's what to think about before you get started.

Key takeaways
1. You don’t always need planning permission 

Some granny annexes need planning permission, but some projects could fall under exempted development.

2. Think ahead before you go ahead

Consider privacy, accessibility, daylight and ventilation from the start, so the space stays comfortable and practical as your family’s needs change.

3. Planning your budget goes a long way

The cost of a granny annexe can really vary, so remember to budget for more than just building it. Things like planning and design, connecting water and electricity, and any unexpected work will all add to the final cost.

What is a granny annexe?

A granny annexe is self-contained accommodation within or attached to your main home, usually with its own bedroom, bathroom and kitchen.

You might also hear it called a granny flat, granny pod or garden annexe, but it is different to a garden room which is usually an extra space for working, exercising or relaxing rather than somewhere designed for independent living.

A granny annexe normally needs to remain ancillary to the main home rather than becoming a separate dwelling. And when it’s done well, it can give a family member somewhere that feels entirely their own whilst keeping you nearby.

Why families are choosing multi-generational living

There are lots of reasons that several generations might live under one roof – or at one address. For some families, a granny annexe means an ageing parent can stay close to the people they love while keeping their independence. For others, it gives grown up children somewhere affordable to live while they save for a home of their own. And sometimes, families simply want to spend more time together without actually sharing a kitchen every morning. 

Some of the benefits of multi-generational living include: 

  • More independence: everyone gets their own space, routines and privacy. 
  • Family is nearby: company, help or childcare can be just a few steps away when you need it. 
  • Less upheaval: an older relative might be able to move closer without the family needing to move house. 
  • Flexibility: a granny annexe can adapt as a family's needs change over time. 
  • Shared costs: living closer together can make some household expenses easier to manage. 

The trick is getting the balance right. A good granny annexe should make it easy to spend time together and close the door when everyone needs a bit of space. 

Do you need planning permission for a granny annexe?

No – as long as your project meets the conditions set out in the latest planning exemptions published by the Irish government in July 2026. 

These conditions include: 

  • 32m² to 45m² floor area  
  • Rear garden only 
  • One storey only 
  • Connected to the main house’s water, electricity and drainage 
  • Maximum 4-metres height  
  • Building regulations compliant 
  • Registered with local authority 

This is great news for homeowners who want to create a granny annexe quickly and without the hassle of going through planning. But be aware that the exemption is temporary – works must take place by (and the exemptions expires on) 31 December 2030. 

Unsure if your plans meet all of the criteria? Speak to your local planning authority for advice. 

What can I fit in a 32m² and 45m² granny annexe?

It’s a good question – and you’ll be pleased to know that there’s plenty of room from the smaller 32m² to the more generous 45m².

As a guide, you could expect:

32m2 granny flat 

A compact studio or small one-bed layout with an open living area, kitchenette and a small bathroom 

45m2 granny flat 

A standard one or two bedroom home with a full kitchen, separate living space and a full bathroom 

It all depends on what you need from your granny annexe and the budget you have to play with, along with local costs for building, materials and everything else you need to get the granny annexe fully functioning. 

Designing a granny annexe for accessibility and comfort

A granny annexe should work for whoever is living there right now, but it's worth thinking about what they might need in the future, too. A few thoughtful design choices at the start could save you from making bigger changes later. 

If you're creating a granny annexe for an older relative who has accessibility needs, you could think about: 

  • Step-free access at the entrance and between rooms 
  • Wider doorways with plenty of room to move around 
  • A walk-in shower rather than a bath or raised shower tray 
  • Grab rails in helpful places such as the bathroom 
  • Easy-to-reach storage, sockets and switches 
  • Enough space to move around comfortably if their needs change 

Comfort matters just as much. Try thinking about heating, ventilation and daylight early on, rather than treating them as finishing touches. For example, if you have limited wall space in your structure, a roof window could help you draw in light from above and make the space feel brighter and roomier.

Where to put a granny annexe

The place you build your granny annexe in depends on the space you have, your budget and how you want it to function. 

Popular choices include: 

  • In the garden: a separate annexe can offer the most privacy while keeping family a short walk away. 
  • As a side or rear extension: attaching the annexe to your home makes it easier to move between the two spaces. 
  • In a converted garage: if you already have a usable structure, a garage conversion into a granny annexe could be a great use of space. 
  • Within your existing home: reworking part of your home can create a separate living space without having to build from scratch. 

It's all about finding that sweet spot: close enough to be there when you're needed, with enough separation for everyone to still feel independent. 

How much does a granny annexe cost?

There’s no one-size-fits-all answer when it comes to the cost of a granny annexe. Irish extension benchmarks are around €2,000–€3,500+ per square metre – and you could spend anywhere from €40,000 for prefabs to €250,000 for larger brick-and-mortar structures. 

But don’t let these numbers put you off. Straightforward conversions could cost much less, so it’s always worth getting a building quote – or a few – to get a feel for rates. 

Published prices can vary depending on what's included, but here’s a rough estimate:

Type of granny annexe 

Rough cost 

What can impact the price 

Garage or house conversion 

From €25,000-€40,000 

The condition of the existing structure, insulation, plumbing and how much structural work is needed 

Prefab (premade structure) or modular annexe 

Around €40,000 

Size, specification, kitchen and bathroom, delivery and groundwork 

Bespoke build from scratch 

From €70,000-€150,000+ 

Size, materials, labour, location and complexity of the design

Before setting your budget, check whether your quote includes things like planning and professional fees, foundations, drainage, electricity and water connections, kitchen and bathroom fittings, and landscaping. You might also want to leave some money aside for anything unexpected.

Property tax, stamp duty and selling restrictions

Creating a granny annexe and knowing your loved ones will be closer can be very exciting, but there are also a few tax and legal details worth understanding, especially if you're building for a relative or thinking about what might happen to the space in the future.

Do you pay Local Property Tax (LPT) on a granny annexe?

A self-contained granny annexe or modular garden home might have a separate Local Property Tax (LPT) liability if it’s capable of being used as an independent dwelling. However, if it’s a part of the main building and owned by the same person, you might be able to value it together with your main property. Ask your local planning authority for advice if you’re unsure.

Does a granny annexe affect stamp duty?

Irish stamp duty is mostly applied as a tax on the purchase or transfer of property, rather than on improvements you make to a home – so your new granny annexe shouldn’t be affected. But we always recommend checking with your planning or building professional, or your local authority.

Can you sell or rent out a granny annexe separately?

If the annexe was approved as ancillary accommodation to your main home, they are generally treated as one property rather than two separate homes. But if you want to sell or rent the annexe out as a separate dwelling later on, you might need to apply for planning permission or have existing planning conditions changed. Your local authority can tell you what applies to your property.

Common mistakes to avoid

There’s a lot to think about when building a granny annexe, so it’s easy for things to get missed. A little planning early on can save you time and money and help you create a space that’s adaptable with your family for years to come. 

Here are some of the most common mistakes to avoid: 

  • Assuming you won’t need planning permission: permitted development doesn’t automatically apply to every granny annexe, so check before making any firm plans. 
  • Designing first and checking the rules later: find out what’s possible for your property before making a call on a particular size, position or layout. 
  • Budgeting for the build alone: consider professional fees, groundwork, utility connections, fittings and a little more for unexpected costs. 
  • Only thinking about what works today: step-free access, wider doorways and an easy-to-use bathroom might not feel essential now, but could make a big difference later – especially for any ageing family members. 
  • Leaving daylight and ventilation until the end: think about where light and fresh air will come from while you're planning the layout – that’s much easier than trying to squeeze in extra windows once everything else is decided. Our roof window size guide can help you find an option for your granny annexe that you (and your family) will love. 
Speak to a design advisorGet free advice

Getting started with your granny annexe

If a granny annexe feels like the right option for your family, try using this quick checklist to kick off your project: 

  • Work out what you want the space to do: who will live there? How much independence do they need? And what would make everyday life and accessibility easier for them, such as step-free access?
  • Speak to a professional: find a planner or builder who specialises in granny annexes. They can look at your property, work out what’s possible and help you understand the planning route before you go into the finer details. 
  • Think about light: daylight can have such a huge impact on everyday life. If there’s a room your loved one will spend a lot of time in, could you maximise the light coming in with a VELUX roof window or flat roof window, and protect the space from getting too hot in the summer with anti-heat blinds. Making a call on this upfront will help you create a space that’s bright, fresh and comfortable to live in. 
  • Set your timeline: granny annexes can take several months to move from initial ideas through planning, design and construction, and more complicated projects could take longer. Decide on a timeline or set a goal, and you can start working towards it. 

Want to dig into some inspiration first? Discover how light and ventilation can transform your home, from climate control in smaller structures to creating sun-drenched family spaces. 
 

Creating a granny annexe: quick questions

Can I build a granny annexe without planning permission?

Yes, as long as your project meets the criteria set out in the July 2026 planning exemptions. This includes a size of between 32m² and 45m², and being in the rear garden of and connected to your main property’s water supply, electricity and drainage. This makes creating a granny annexe smoother for a lot of homeowners – but the exemption will end on 31 December 2030.

What’s the cheapest way to build a granny annexe?

Working with space you already have, such as a garage, is much cheaper than building from scratch. A small prefab (a pre-built structure) or modular annexe would probably cost less than a bespoke build. Whatever you decide on, remember to budget for plumbing, electrics, insulation, professional fees and any groundwork needed – with a little leftover just in case.

How much would a granny annexe cost to build?

There’s no exact answer to this as no two projects are the same. Depending on the size of the structure you want and the work involved, a typical cost can range from tens of thousands to over €200,000. Converting an existing space tends to be cheaper, whereas larger, bespoke builds would be more expensive. You can always get quotes from builders to find the option that’s right for you.

What is a granny annexe?

A granny annexe is a structure that’s part of, or sits alongside, a main dwelling. This is known as an ancillary structure as it’s considered to be dependent on the main household, but it does usually have its own kitchen and bathroom along with one or more bedrooms. Lots of people create granny annexes to house ageing family members, or for adult children to live in before they leave the home. 

How big can a granny annexe be?

There isn’t one maximum size for any granny annexe. And what you build depends on your property, your needs, the available land and which planning rules apply. Remember, in Ireland you don’t need to apply for planning permission if your granny annexe is between 32m² and 45m² and meets other criteria. It’s worth checking this out and speaking to your local authority for more info.

Do you need special insurance for a granny annexe?

You might not need a separate insurance policy for your granny annexe, as some home insurance policies will cover it. It can depend on how the annexe is built and used, and whether it’s a fully self-contained home. The simplest thing to do is speak to your insurer before you build and check exactly what cover you’ll need.