Finance for Sheds & Garden Rooms

Why garden buildings are booming

The British garden has quietly become the hardest-working room in the house. In 2023, installations of UK garden rooms rose by 35.5%, driven by remote work and the hunt for flexible space that does not require a full extension (source 1). Households spent around £8 billion on garden products the same year, underlining the sector’s resilience and its wellbeing halo for 26 million participants (source 2). At the practical end, sheds are evolving from storage to multifunctional studios with smart security and climate control, reflecting a global market projected to reach $15 billion by 2035 (source 3).

For homeowners, the equation is simple: a well-insulated, professionally installed garden room can add an estimated 5-15% to UK property value, depending on quality, spec and how well it integrates with the home and garden (source 6). That potential uplift sits alongside tangible lifestyle gains - separation for work, calm for hobbies, and space for guests. Sustainability is a growing priority too. Prefabricated models now make up over half of new installs, with wood-based constructions commanding a 41.2% share, dovetailing with demand for eco-friendly materials and lower embodied carbon (source 1, source 10).

Understanding APR is not just about percentages - it is about knowing the total you will repay over time. Getting the numbers right helps you enjoy the space without financial strain.

Costs vary widely. Basic prefabs often start from around £5,000, mid-range insulated rooms typically sit between £15,000 and £30,000, while bespoke builds can exceed £30,000, especially with upgrades like underfloor heating and bi-folds (source 4). Installation can be quick - sometimes just two days for simpler models - which makes finance timing relevant. With 16% of UK homeowners planning to convert sheds for work and another 16% eyeing new garden rooms for leisure, demand is set to remain strong (source 5). If you are weighing up finance, a measured approach is to map total project cost, explore lending choices, and test repayment resilience under rate changes before you commit.

Who benefits most

Garden buildings suit remote workers who need a quiet, insulated workspace with reliable power and data. They also work for creators, crafters and fitness enthusiasts who value separation from the main home. Households seeking guest accommodation or teen spaces gain versatility without a full extension. Landlords and sellers may see improved appeal and valuation with high-quality, compliant builds. Environmentally minded homeowners can prioritise timber and recycled materials, aligning with UK sustainability preferences and potential energy efficiencies. If liquidity is tight but timelines matter, finance can bridge the gap while preserving savings for emergencies. Kandoo can help you compare options with a soft-search approach so you can check eligibility without affecting your credit score.

Ways to fund your project

1. Unsecured personal loan - fixed terms for predictable monthly repayments.

2. 0% purchase credit card - short-term interest-free if cleared in time.

3. Buy now pay later - deferred payments, check fees and end-of-term rates.

4. Secured homeowner loan - larger sums over longer terms, property backed.

5. Vendor finance - offered by some suppliers, convenience with limited choice.

6. Remortgage or further advance - spreads cost, consider overall interest.

7. Savings plus smaller top-up loan - reduces interest and preserves buffers.

Costs, returns and risks at a glance

Sustainability sells - timber, recycled insulation and low-VOC finishes can enhance appeal and comfort.

Who can apply

Most UK residents aged 18+ with a regular income can explore finance for sheds and garden rooms. Lenders assess affordability first, then credit history, followed by project specifics such as supplier reputation and whether the unit is temporary or on fixed foundations. Tenants may be eligible for unsecured options, while homeowners can consider secured loans or remortgaging subject to equity and lender criteria. Good credit typically unlocks lower rates, but near-prime options exist where affordability is strong and recent credit conduct is stable. Expect documentation such as proof of ID, address, income and, for larger projects, a supplier quote. If your credit profile is mixed, consider improving it before applying by reducing utilisation and correcting any file errors.

Kandoo is a UK-based retail finance broker. We work with a panel of lenders to help you compare personal and homeowner loans. Our soft-search checks eligibility without impacting your credit score, so you can see rates before you decide.

From quote to keys - the process

1. Define scope, size, insulation level and intended use.

2. Get written quotes from reputable UK suppliers.

3. Set total budget including groundwork and electrics.

4. Check planning rules and permitted development limits.

5. Compare finance options and provisional eligibility.

6. Submit application with documents and supplier quote.

7. Receive decision, finalise terms and sign agreement.

8. Schedule installation, confirm warranties and handover.

Upsides and trade-offs

Check these before you commit

Before you lock in finance, confirm whether your project sits within permitted development or needs planning consent, especially for height, proximity to boundaries, and use as sleeping accommodation. Clarify foundations, damp-proofing and insulation specs because comfort hinges on thermal performance as much as heating type. Request wiring by a qualified electrician and ensure adequate ventilation to manage moisture in winter. Review lead times carefully - high demand and seasonality can stretch schedules. Ask for written warranties on structure, windows, roof membranes and electrics, and confirm aftercare. Finally, model repayments under higher rates to test resilience, and keep a contingency for groundwork surprises like sloping plots or tree roots.

Alternative routes

1. Convert an existing shed with insulation and power upgrades.

2. Rent a local co-working desk while you save.

3. Build a modest porch office or internal box room.

4. Extend the house or add a loft room instead.

5. Choose a smaller off-the-shelf cabin for phased growth.

6. Buy second-hand units and refurbish to reduce costs.

FAQs

Q: Do I need planning permission for a garden room? A: Many projects fall under permitted development if single storey, within height limits and not used as sleeping accommodation. Always check local authority guidance before ordering.

Q: How much should I budget overall? A: For the room plus essentials, expect roughly £5,000-£50,000+, with extra for foundations, wiring, heating and glazing. Build in a 10-15% contingency for surprises (source 4).

Q: Will it add value to my home? A: Quality, insulated rooms can add around 5-15% to value when well sited and finished, especially with strong kerb appeal and practical year-round use (source 6).

Q: Can I heat it efficiently? A: Yes. Options include electric panel heaters, infrared, or air-source heat pumps for larger spaces. Insulation and airtightness are the starting points for comfort and cost control.

Q: What credit profile do I need? A: Lenders prioritise affordability and recent conduct. Strong credit usually secures better rates, but Kandoo’s panel includes options for varied profiles subject to status.

Q: How quickly can funds be available? A: Simple unsecured loans can be rapid once documents are verified. Align funding to supplier lead times, which can range from days to several weeks.

Q: Are smart sheds worth it? A: If you value security alerts, remote heating control and humidity monitoring, smart features add convenience and protection, reflecting broader market innovation trends (source 3).

Ready to compare finance

If a garden room would transform your day-to-day, take a moment to cost the full build and test repayments against your budget. Kandoo can help you compare lenders with a soft-search check and transparent terms so you can proceed confidently, protect your savings buffer and keep your project on schedule.

Important information

Kandoo is a broker, not a lender. Finance is subject to status, affordability and terms. Rates and offers can change. This guide is general information, not advice. Check planning, building control and warranties before committing.