Granny Flats and Garden Homes: A Smarter Way to Add a Second Home

Family outside a TheHouz modular home

Last updated: August 2026

One property. Two independent homes.
Across Europe, families are looking again at how several generations can live close to one another without necessarily living under the same roof.
Parents may want to be closer to their children. Adult children may need somewhere affordable to establish themselves. Families change. People return home. Work moves home.
Sometimes the answer is not a larger main house.

It is a smaller second home.
A properly designed garden home can provide an independent kitchen, bathroom, bedroom and living space — while keeping family only a few steps away.
And with panelised construction, creating that additional home does not necessarily mean turning the entire property into a traditional building site for months.

Who is a garden home actually for?

There is no single use. The enquiries tend to come from a few recurring situations.

Parents who want independence — but family nearby

A separate garden home can provide privacy and independence while keeping children or relatives close enough to help when needed.
Separate front door.
Separate living space.
Still part of the same family property.
For many households, that balance is the entire point.

Adult children building their future

Housing affordability is difficult across many European markets.
A compact home on family land can, where planning rules allow, provide an alternative to years of renting while allowing an adult child to live independently.
And unlike converting a spare bedroom, it creates a genuine separate living space.

Families that change

People return from abroad.
Relationships change.
Relatives need temporary or longer-term support.
A second dwelling can give a property flexibility that a conventional single-family layout cannot.

Work, guests and flexible living

Depending on local rules and the approved use, the same type of building can also provide high-quality space for:
home working · guests · studio use · extended family

The important distinction is whether the building is intended and approved as a habitable dwelling or for another use.
That affects planning, specification and compliance.

A garden home should still be a real home

Small does not mean temporary.
If somebody is going to live there permanently, the building should be designed accordingly.
That means thinking about:

  • structural performance;
  • insulation;
  • airtightness;
  • heating;
  • ventilation;
  • moisture control;
  • fire safety;
  • natural light;
  • drainage;
  • storage;
  • and long-term maintenance.

TheHouz compact homes use the same underlying panelised construction principles as the larger homes in the range.
Permanent structure.
High-performance envelope.
Real heating and ventilation.
Real kitchen and bathroom.
Designed for year-round living.

The floor area changes.
The philosophy does not.

How much space do you actually need?

This is where good design matters.
A compact home does not need to feel like one room with furniture squeezed into it.
For one or two occupants, approximately 33–45 m² can provide a genuine independent home when the plan is designed efficiently.

That can include:
living + kitchen · separate bedroom · bathroom · storage
The R Family™ is particularly well suited to this type of project because its rectangular form maximises usable internal area and minimises wasted circulation.
Compact R Family™ configurations begin at 32.9 m², with larger options available as requirements grow.

The right size should be chosen around the person who will actually live there — not simply the maximum area the site can accommodate.

Why panelised construction works particularly well in gardens

Back gardens can be difficult construction sites. Access may be through:

  • a side passage;
  • a narrow gateway;
  • an established driveway;
  • a restricted residential street;
  • or alongside an existing occupied home.

This is one of the reasons TheHouz uses a panelised MMC system rather than large volumetric room modules. The home is transported as engineered building elements rather than one enormous completed box. That can significantly improve access possibilities.
It also means the majority of manufacturing happens away from the property in controlled factory conditions. There will still be site activity. Foundations have to be prepared. Services have to be connected. Panels have to be assembled and the home completed.
But much of the manufacturing has already happened somewhere else.
For a family continuing to live in the main house, that matters.

What about planning permission?

This is where there is no single European answer.
Garden-home rules vary substantially between:
countries · regions · municipalities
Some jurisdictions provide simplified procedures or exemptions for certain secondary dwellings.
Others distinguish sharply between: garden building and permanent independent dwelling.
Size alone does not determine the answer.
A 30 m² office and a 30 m² self-contained home may be treated very differently because one is an ancillary space and the other creates another household.
So before choosing a model, establish:
Can I create an independent dwelling here?
What size is permitted?
Where can it sit?
What open space must remain?
Can it be occupied permanently?
Are there restrictions on renting it?
Do I need to notify or apply to the local authority?

TheHouz can provide the home-system technical information, but the planning position needs to be confirmed for the actual property.

What about countries with simplified garden-home rules?

Where a country or municipality provides an exemption or simplified route, compact panelised homes can become particularly interesting.
But always read the conditions.
Exemptions can contain requirements covering:

  • maximum and minimum floor area;
  • building height;
  • position within the garden;
  • distance from boundaries;
  • remaining private open space;
  • relationship to the main dwelling;
  • occupation;
  • rental;
  • drainage;
  • and notification procedures.

Planning-exempt does not mean regulation-exempt.
A permanent dwelling still needs to satisfy the applicable technical and building requirements.
Country-specific TheHouz planning guides can explain these rules separately as we enter each market.

Five things to check before ordering

A compact home is still a real construction project.
These are the five questions to answer first.

1. Planning

Can another habitable dwelling legally be created on the property?
Start here.

2. Access

Can the panels, installation equipment and team reach the proposed home position?
Send photographs and dimensions early.

3. Services

Where will the new home obtain:
electricity · water · drainage · telecommunications
Can existing services support another dwelling, or are new connections required?

4. Ground conditions

The lightweight TheHouz structure can reduce foundation loading, but the ground still needs an appropriate foundation solution.

5. Space around the home

Do not measure only the building footprint.

Allow for:
boundaries · access · drainage · maintenance · outdoor space · installation requirements
A home that technically fits is not necessarily a home that fits well.

Garden home or extension?

They solve different problems. An extension makes the existing house bigger. A garden home can create independent living. That difference becomes particularly important for multigenerational families. Parents may want their own kitchen. Adult children may want their own front door. Guests may stay for weeks rather than days. An extension keeps everyone inside one household. A garden home can allow people to be: together — but independent.

What about privacy?

This deserves consideration early. A good garden-home layout should think about both houses. Where are the bedroom windows? Where is the entrance? Which direction does the terrace face? Can occupants see directly into each other’s living spaces? Does the new home take all the best part of the garden? The objective should not simply be to fit another building onto the plot. It should be to create two homes that work well together.

What about energy use?

Compact high-performance homes have an interesting advantage: there is simply less space to heat. Combine that with a highly insulated, airtight envelope and the underlying heating demand can be very low. Depending on home size, climate and specification, TheHouz can use different heating strategies — from efficient direct-electric solutions for some very small homes to air-to-water heat pumps for larger configurations.
Options can also include:
MVHR · Solar Ready · solar PV · battery storage · smart-home controls
The system should be sized to the home rather than installing equipment simply because it is fashionable.

What does it cost?

There is no useful Europe-wide single price. The final project depends on:
home size + specification + destination + foundations + utilities + access + installation scope
That is why the TheHouz configurator allows the home itself to be configured first. Site-specific costs can then be assessed around the actual property. When comparing quotations, make sure you know whether the price includes:
the home · delivery · installation · foundations · service connections · professional fees
A cheap advertised building and a completed permanent dwelling are not necessarily comparable products.

How long does it take?

Every TheHouz project receives its own programme. For a garden home, that programme can cover:
planning / approvals → technical coordination → procurement → factory manufacture → foundations → delivery → assembly → completion → commissioning
The major advantage is that factory manufacture and site preparation can often progress in parallel. The panelised structure itself can be assembled rapidly once the prepared site is ready.
The complete home then moves through finishing and commissioning according to the agreed project programme.

Start with the garden, not the brochure

If you are considering a garden home, the best first step is not choosing the kitchen.
Send us:

  • the property location;
  • a few photographs of the garden;
  • approximate dimensions;
  • photographs of the access;
  • and an idea of who the home is for.

From that, the important questions become much clearer:
Does it fit?
Can we reach it?
Can it be serviced?
What planning route applies?
Which home size actually makes sense?

Only then should the detailed configuration begin.

Frequently asked questions

Do I need planning permission for a garden home?

It depends on the country, municipality, size and intended use.
Some jurisdictions provide simplified routes for certain secondary dwellings, while others require full planning permission.
A habitable independent home may also be treated differently from a garden office or ancillary building.

Can my parents live there permanently?

Potentially, yes — provided the building and site are approved for permanent residential use and satisfy the applicable requirements.
TheHouz compact homes are designed as permanent residential buildings rather than temporary cabins.

Can my adult child live there?

Subject to the applicable planning and occupancy rules, yes.
Creating independent living space for adult family members is one of the principal reasons customers consider compact secondary homes.

Can I rent the garden home?

That depends entirely on the local planning, housing, tax and rental rules.
Do not assume that permission to build or occupy a secondary dwelling automatically gives unrestricted permission to rent it separately.
Check the local rules before building a financial case around rental income.

Is a garden home the same as a garden room?

No.
A garden room is commonly an ancillary space such as an office, gym or leisure room.
A self-contained permanent dwelling includes residential functions such as sleeping, cooking, washing and independent occupation and may therefore fall under very different regulatory requirements.

How small can a proper home be?

Good planning matters more than the headline number.
The R Family™ begins at 32.9 m², allowing a compact footprint to provide genuine living, sleeping and bathroom space.

Why not just buy a cabin?

A cabin may be perfectly suitable for garden or leisure use.
But if someone is going to live there permanently, compare the structure, insulation, heating, ventilation, fire performance, documentation and regulatory status — not simply the purchase price.

The principle is simple

A garden home is not about squeezing another building onto a property. It is about creating another place to live well.
For parents.
For adult children.
For returning family.
For whatever comes next.
Close enough to be together.
Independent enough to have your own home.

That is where a compact TheHouz can make sense.

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