Why the Property Elite Are Investing in Backyard Bungalows

Why the Property Elite Are Investing in Backyard Bungalows
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Published September 16, 2025 3:35 AM PDT

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With multiple properties in their portfolio, you may wonder why top earners choose to build additional living space on their land. As many opt to entertain and create all-in-one living solutions, the traditional backyard bungalow is getting a makeover. It is no longer a solution to affordable housing, but a stylish property accessory. From self-contained luxury living to entertainment spaces, here is why backyard bungalows are back in vogue.

What Is a Backyard Bungalow?

For a long time, backyard bungalows have been named granny flats or in-law suites. Their correct moniker is an Accessory Dwelling Unit, or ADU. It is a small, separate living quarter set away from the main house. Comprising its own electricity and water supply, they operate almost like a small holiday chalet.

These are most common in the US, where houses are built on larger plots of land. People often rent them out or even let older children occupy them as a halfway point before they fly the nest. However, they are coming into their own as valuable places, almost like a second home, that can be used for guests or entertaining.

ADUs in the UK

In UK households, these have primarily been used for multi generational living. As one-storey buildings, they allow elderly relatives to live comfortably with their own independence, providing space, but never too far away from the family. This is an alternative to elderly care homes, which are extremely expensive.

Usually, these are funded by the sale of a property, often one that the relative has lived in. Alternatively, they may be from the sale of a rental property owned by one of the parties involved. Companies such as We Buy Any Home can help in these situations, offering a cash price almost immediately. As they have quick turnaround times, they are ideal if people need cash for an ADU or other purpose but don’t want the lengthy estate agent route.

The Million Dollar Property ADU

Why the Property Elite Are Investing in Backyard Bungalows

 Source: Pexels
With multiple properties in their portfolio, you may wonder why top earners choose to build additional living space on their land. As many opt to entertain and create all-in-one living solutions, the traditional backyard bungalow is getting a makeover. It is no longer a solution to affordable housing, but a stylish property accessory. From self-contained luxury living to entertainment spaces, here is why backyard bungalows are back in vogue. 
What Is a Backyard Bungalow?
For a long time, backyard bungalows have been named granny flats or in-law suites. Their correct moniker is an Accessory Dwelling Unit, or ADU. It is a small, separate living quarter set away from the main house. Comprising its own electricity and water supply, they operate almost like a small holiday chalet.
These are most common in the US, where houses are built on larger plots of land. People often rent them out or even let older children occupy them as a halfway point before they fly the nest. However, they are coming into their own as valuable places, almost like a second home, that can be used for guests or entertaining. 
ADUs in the UK
In UK households, these have primarily been used for multi generational living. As one-storey buildings, they allow elderly relatives to live comfortably with their own independence, providing space, but never too far away from the family. This is an alternative to elderly care homes, which are extremely expensive. 
Usually, these are funded by the sale of a property, often one that the relative has lived in. Alternatively, they may be from the sale of a rental property owned by one of the parties involved. Companies such as We Buy Any Home can help in these situations, offering a cash price almost immediately. As they have quick turnaround times, they are ideal if people need cash for an ADU or other purpose but don’t want the lengthy estate agent route. 
The Million Dollar Property ADU
 Source: Pexels
The Beckhams are one celebrity power couple who have been vocal advocates of the granny-less granny flat. In 2020, the Manchester United Alumni and former Spice Girl announced that their £31 million Holland Park mansion was getting an annexe installed. This was so that their son, Brooklyn Beckham and his girlfriend Nicola Peltz could use it when they went to stay. 
Famed fashion designer Anna Sui also has a maximalist annexe that she showed off to Elle Magazine in 2009. It was decked out in everything from stuffed peacocks to spotted wingback armchairs and gothic mirrors. The annexe was used for spreading her work on book projects. The building of the area required serious renovation to her plush Manhattan apartment in Greenwich Village. 
Unfortunately, you can’t just build an annexe and do need permission. This was what prevented Claudia Schiffer and her husband Matthew Vaughn from building one at their Suffolk Manor in England. Despite having 14 bedrooms available, the model and her film director husband still wanted a little extra space, but had planning permission turned down.

 

The Beckhams are one celebrity power couple who have been vocal advocates of the granny-less granny flat. In 2020, the Manchester United Alumni and former Spice Girl announced that their £31 million Holland Park mansion was getting an annexe installed. This was so that their son, Brooklyn Beckham and his girlfriend Nicola Peltz could use it when they went to stay.

Famed fashion designer Anna Sui also has a maximalist annexe that she showed off to Elle Magazine in 2009. It was decked out in everything from stuffed peacocks to spotted wingback armchairs and gothic mirrors. The annexe was used for spreading her work on book projects. The building of the area required serious renovation to her plush Manhattan apartment in Greenwich Village.

Unfortunately, you can’t just build an annexe and do need permission. This was what prevented Claudia Schiffer and her husband Matthew Vaughn from building one at their Suffolk Manor in England. Despite having 14 bedrooms available, the model and her film director husband still wanted a little extra space, but had planning permission turned down.

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