Multi-generational living more attractive than ever before as ‘granny flat’ Council Tax halved

Last August 25th, Local Government Secretary Eric Pickles announced new government plans to remove an unpopular Council Tax surcharge on family annexes or so-called ‘granny flats’ in an effort to support the housing needs of extended families.

  • Council Tax rates for lived-in annexes to fall by 50% as of April 2014
  • Tax break expected to knock £500 a year off total household Council Tax bills
  • “Does an live-in au pair qualify?” asks James Wyatt, Partner of Barton Wyatt

This reduction of 50% in Council Tax is due to come into effect in April 2014 with many households containing annexes welcoming the estimated £500 annual saving.  The reduction will only be applicable to annexes however which are supporting a family member – so grandparents or young adults most likely.

James Wyatt, Partner of Barton Wyatt, the leading estate agency in and around Wentworth, Surrey, where almost every house has an annexe whether it be for the granny, the nanny or the chauffeur, comments:

“In our neighbourhood we are unlikely to benefit from this Council Tax reduction which is a great pity.  In Wentworth these annexes are almost exclusively used for housing staff, whether it be an au pair, a house keeper or a cook.  The reduction only comes into play when ‘family members’ are residing in the annexe, achieving slightly divorced living arrangements, a sort of family apartheid!!

But Wyatt goes on to say, “there is a good argument to say that an au pair is part of the family and not an employee in the traditional sense, therefore anyone with an au pair should be entitled to this reduction.  The UK government website states that an au pair should be treated as a member of the family they live with and get ‘pocket money’ instead of a salary – usually about £70 to £85 a week. We will definitely be looking into this further.”

With an already estimated 24,150 family annexes present in the UK, it is hoped this tax break will encourage more families to build so-called ‘granny flats’ further boosting the construction industry and enabling more older people to live independent lives.

James Wyatt goes onto suggest a possible alternative to this double taxation if you are building a new home:

“The current legislation is all to do with kitchens! If you are building a new home and you only install one kitchen then I believe only one Council Tax will apply.  The moment you start adding a second kitchen you are in trouble. Obviously the very nature of an annexe means you need a kitchen. There’s little point having granny or nanny squirreled away if they need to appear in the family kitchen every time they want to make a sandwich!”

For more details contact Barton Wyatt on 01344 843000 or visit www.bartonwyatt.co.uk.

On the Market: Homes with annexes

Waterford House, Wentworth Estate
£4,250,000

Five bedrooms, five bathrooms, five reception rooms, cinema room, games room, three car garage with studio annexe over with shower room and kitchenette, beautifully landscaped gardens.

Waterford House was built in 2005 for the current owners, a house of considerable charm and character and individuality. No expense was spared in the construction of the house using the finest materials and construction methods. Of particular note is the amount of technology within the house with Crestron and Lutron systems controlling the audio visual, curtains, blinds and even the running of the bath via IPhone technology. Throughout the house there is a feel of sophisticated luxury with attention to detail and design.
The property is approached through wrought iron gates on brick piers with a driveway that has ample parking for many cars.

The gardens were designed and created by Urban Red Landscape Architects who have managed to achieve a wonderful variety of changing colour throughout the seasons. An extensive terrace spans across the rear of the property to a slightly raised dining area off the concertina doors from the kitchen. A pathway leads around the perimeter of the rear garden to a sun terrace in the north west corner of the garden with an attractive pond and water feature. In the centre of the garden is a very attractive Rill which can be seen as you come through the front door of the property. The gardens are really quite a feature of the property and should be viewed to be appreciated.

Park Place, Windlesham                                                                                                              £6,250,000

This is a magnificent country house which stands impressively within a mature woodland setting and approached via a private road.  Wrought iron gates open onto a gravelled drive flanked by mature trees and rhododendrons which leads to a central fountain in front of the house.

Built in 1995, this Georgian style property has been built to an exceptionally high standard.  The imposing reception hall with a central staircase, marble and granite floors with under-floor heating, a hand-made kitchen and custom made furniture in many parts of the house all blend to create a unique and wonderful home.

Ground floor includes: reception hall, dining room, cinema, drawing room, music area, kitchen and utility, sitting room, study and cloakroom.

First floor has the master suite and 4 further bedroom suites.  Second floor – another 4 bedroom suites.

The ample garage will house 3 cars and has a staff flat over.  A generous cottage in the grounds offers further accommodation with kitchen, living area, 3 beds and bathrooms.

St Christopher, Virginia Water
£3,750,00

St Christopher is an elegant and impressive family home built in approximately 1994. The main reception rooms are laid out in a formal fashion, yet the kitchen/breakfast room which incorporates a generous conservatory overlooking the rear garden offers a comfortable living space, ideal for family and formal gatherings.

Set well back in a mature and established gardens, the property has an air of elegance and grace but also provides a good degree of privacy and security behind the electric wrought iron gates.

Master bedroom with en-suite bathroom and separate dressing room, guest bedroom with en-suite bathroom, four further bedrooms, entrance hall, cloakroom, drawing room, dining room, study, kitchen/breakfast room incorporating conservatory, family room, utility room, one bedroom annexe with en-suite bathroom, triple garage, gardens.

For more details contact Barton Wyatt on 01344 843000 or visit www.bartonwyatt.co.uk.