Renting a granny annexe
How annexe rental works, what it costs over time, and when renting makes more sense than buying.
Most families who build a granny annexe buy it outright, and the cost of a granny annexe usually runs to tens of thousands of pounds before the first night anyone sleeps in it. Renting changes that. A small number of specialists now supply self-contained annexes on a monthly rental, with a one-off installation fee at the start and the option to hand the building back at the end.
It suits a particular kind of need: a parent who needs to live closer now, a care arrangement that may change in a few years, or a family that wants to test garden living before committing to a purchase.
In short
- How it works: a one-off installation fee, then a fixed monthly rent for a minimum term, after which you keep renting, buy the annexe or have it collected.
- Cost: Booths Garden Studios rent annexes from £745 a month on a 24-month minimum, plus an installation fee of £5,995 or £7,995.
- Rent or buy: renting is cheaper for a need of a few years; at around five years, total rent passes the entry purchase price of £49,995.
- Planning: rental annexes are designed as mobile homes under the Caravan Act, so one for a family member can generally go in without a planning application.
How does renting an annexe work?
The structure is similar to renting a garden office, with larger figures. You pay a one-off installation fee, then a fixed monthly rent for a minimum term. When the term ends, you can carry on renting, buy the building, or have it collected.
Rental annexes are designed as mobile homes under the Caravan Act, so they sit on a chassis built to be moved rather than on a concrete base. At the end of the term, the annexe can be taken away relatively cleanly, leaving the garden much as it was. That is a large part of why rental works for annexes built this way and not for permanent annexes.
What does it cost to rent an annexe?
Booths Garden Studios publish their annexe rental prices in full. At the time of writing, their four layouts rent on a 24-month minimum term:
| Layout | Monthly rent | Installation |
|---|---|---|
| Straight 20ft x 8ft6.1m x 2.4m, about 15sqm | from £745 | £5,995 |
| Straight 24ft x 8ft7.3m x 2.4m, about 18sqm | from £795 | £5,995 |
| Squire, 16ft x 17ft4.9m x 5.2m, about 25sqm | from £995 | £7,995 |
| Lincoln L-shape24ft x 8ft plus 12ft x 8ft, about 27sqm | from £995 | £7,995 |
Booths Garden Studios rental prices, 24-month minimum term. Checked October 2026.
Over the minimum two years, the smallest layout comes to roughly £24,000 including installation. Booths’ annexes to buy start from £49,995 including VAT, so on those figures renting is the cheaper route for a need measured in a few years. Somewhere around the five-year mark, total rent passes the entry purchase price, and buying starts to make more sense.
Each rental annexe is self-contained, with space for a double bed, a fitted kitchen and a shower room, and is finished inside the same way as the annexes Booths sell. Air conditioning handles both heating and cooling, and a dehumidifier, flooring, blinds and lighting are included, along with groundworks up to 20 metres and the electrical and internet connections. Booths maintain and insure the annexe for the length of the rental.
The shower room has a waterproof floor throughout, and the shower door can be left off for wheelchair access or where someone needs help showering. That matters if the annexe is for an older parent whose mobility may change. Water and drainage connections are not listed among the inclusions, so they are worth asking about at the site survey.
Is renting an annexe right for you?
Renting works best where the timescale is uncertain or short. Care needs can change quickly, and a building that can be returned avoids the risk of a large purchase that is only lived in for a couple of years. It also puts an annexe within reach of families who could not fund one outright, and it is worth setting against the cost of residential care when the two options are being weighed up.
The trade-off is choice. Rental annexes come in a fixed set of layouts and finishes, with little room for bespoke design. For a long-term home, or a building designed around a specific site, buying is still the better route.
Does a rented annexe need planning permission?
A rented annexe needs the same approval as a bought one. Booths supply their annexes to comply with the Caravan Sites Act 1968, which means one used by a family member as part of the main household can generally be installed without a planning application. The annexe cannot be attached to the house, and listed buildings and Areas of Outstanding Natural Beauty may still need the council’s agreement.
Read more: How the Caravan Act route works →
Where can you rent a granny annexe?
Annexe rental is still unusual in the UK. Booths Garden Studios manufacture in Corby, Northamptonshire, and install annexes across England. Their sales adviser Derek walks through the site survey for an annexe, and Iain explains how the rental works on video. To see what living in one is like, Catherine, who moved from a two-bedroom flat into her Booths annexe, talks about the change here.
Find annexe specialists that cover your area
The Garden Room & Annexe Directory lists UK companies that design and build garden annexes.