Turnover soars at annexe builder as people seek alternatives to house buying

Doncaster based iHus, a specialist in the design and build of luxury annexes, is celebrating a bumper year in which turnover increased to £10m, a £3m rise on the previous year’s figures.

Over the last year, the firm has built 75 annexes, a 32% increase on last year. Overall order value also increased over the past 12 months, with a 22% increase in the size of annexe being purchased.

The firm also experienced a record first quarter, reporting a 38% increase in sales in quarter one compared to the same period last year.

It recorded a 163% sales increase between quarter one of 2022 and quarter one of 2023.

The firm welcomed seven new team members over the last year, taking its total headcount to 37.

While iHus’s heritage is in the development of ‘granny flats’, the brand says it is seeing an rise in clients looking to buy an annexe as a cost-effective alternative for first-time buyers and those seeking childcare support.

James Lund-Lack

James Lund-Lack, managing director of iHus, said: “Inflation and mortgage rates are making it harder for first time buyers to get on the property ladder, even more so following today’s announcement that major mortgage lenders are further increasing the cost of home loans.

“Consequently, we have seen an increase in enquiries from young people looking to an annexe as a way of coping with interest rate hikes.

“Historically, we have seen a 70/30 split in our customer base with 70% opting for an annexe to house an elderly relative, and 30% choosing an annexe for financial reasons, such as the first-time buyers.

“This has changed in the last year or so and we are now looking at more of a 50/50 split between these factors.”