Grandparents moving into the back yard to save the Australian home dream for their grand kids

Generous grandparents are moving into their backyards so their grandkids can grow up in a house, amid big changes for the humble granny flat around Australia. And more could be on the way.

Selfless grandparents are moving into granny flats in their back yard as their adult kids move into their childhood home to get out of Victoria’s rental crisis.

Meanwhile growing families are putting up temporary residences in their gardens as they can no longer afford a bigger home or even a traditional extension amid surging interest rate and building costs.

It comes as the state government prepares for its biggest overhaul to granny flat regulations in decades as part of the Victorian Housing Statement, with the planning department preparing for changes allowing them to be rented out for the first time before the end of 2023.

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Prior to the announcement, providers have revealed there was a growing trend of grandparents selflessly moving out of their home so their grandkids can grow up in a house.

Earlier this year Rachael Robinson sold her home and used the funds to help her son, Scott, his wife, and her granddaughter Renee, to buy a Sommerville property.

Later this year, Ms Robinson, who is approaching 80, will move into a granny flat being built out the back.

“We have been renting for the last 10 years and the only way to get back on the ladder was to combine forces,” Mr Robinson said.

“The easiest way to do that was to buy a house where we could have a granny flat and share the costs of living. That’s what we’ve had to do just to get on to the ladder, to get the Australian dream.”

Scott Robinson, Rachael Robinson and Renee Robinson in the backyard where their new granny flat will go. Picture: Josie Hayden.

He added that he was also glad he’d be able to provide more support for his mum by having her on his back doorstep.

Ryan Pitts at Elpor granny flats said they weren’t alone.

“A lot of the time we have a scenario where instead of putting mum and dad in their backyard, a family moves into mum’s house and they pay for the granny flat and the grandparents go caravanning six months a year,” Mr Pitts said.

Under the Victorian Housing Statement’s revisions a small second residence under 60sq m in size will not require a town planning permit, so long as the parent property is more than 300sq m in size.

The Planning Department this week confirmed these units will be able to be rented out, the first time this has been allowed in Victoria, though a building permit will still be required and some planning controls such as overlays may require a more detailed process.

A two-bedroom granny flatcan be built in a suburban back yard for as little as $140,000.

The change will also end the requirement to remove a granny flat, or convert it to a studio space without a kitchen, after all dependants have moved out.

“Initially, through our reforms, small second homes that meet conditions such as being 60sq m or less will not require a planning permit, making it easier to build a second home on your property,” a spokeswoman said.

“Further details on changes will be released later in 2023.”

But with building costs having added $35,000 to the cost of even a 45sq m, one-bedroom granny flat in the past 18 months, Mr Pitts said he was worried regulatory change would make them even more expensive — based on Queensland’s experience with second dwelling regulations.

“You might wind up needing overshadowing modelling done, and open space and landscaping,” Mr Pitts said.

A one-bedroom granny flat with a living area, bathroom and kitchenette can be built for about $104,000.

Today the only requirements to dodge town planning approvals for most granny flats are for a building permit to confirm there were no overlays or easements and ensuring the removable home is located at least a metre from the back fence.

At present a straight forward application can take as little as three months to have a granny flat installed, but he noted those putting them in should be aware they would pay extra on their council rates — with most charging about $850 a year.

Property Council of Australia Victorian executive director Cath Evans said while the planned changes around granny flats were good, the organisation had concerns about why they were needed.

“While we’re supportive of the changes to granny flats and small secondary dwellings, the surge in their popularity is a symptom of the broader housing supply crisis,” Ms Evans said.

“The reforms outlined in the Housing Statement are the first step towards addressing housing affordability and providing housing choices so that Victorians are not forced to consider granny flats where they may not be appropriate to their situation.”

She added that there would be broader benefits for housing supply, with more small homes built without town planning removing them from backlogs slowing down more substantial development.

Examples of the granny flats that can be built by Elpor.

Garden Studios design consultant Tristan Cairns-Malcolm said call volumes to the firm had increased 50 per cent since the Housing Statement was announced just over two weeks ago.

“People are asking speculative questions about building under 60sq m homes, so it’s heavily influenced by the news from the state government,” Mr Cairns-Malcolm said.

Before the announcement was made he said a lot of the inquiries were from growing families who needed extra space and weren’t able to find a bigger home that suited their needs, or to afford an extension to their existing home.

Superior Granny Flats director Doug Bray said there were even situations where grandparents and their kids would both sell their existing homes, then combine their funds to buy a large regional property and add a granny flat to it.

“And we have had a few people say they are paying $500 to $600 a week in rent, so they might as well take a loan for a granny flat and stay at home for another five years,” Mr Bray said.

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