Garden room finance, value, tax and insurance

Paying for a garden room

• Savings: the cheapest option, with no interest.
• Home improvement or personal loan from a bank, credit union or lender. Compare the APR and total cost of credit.
• Supplier finance: some garden room companies offer payment plans. Read the terms closely and compare them with a loan.
• Mortgage top-up: usually a lower rate, but spread over many years, so you may pay more interest in total.

We don't give financial advice. Compare options on total cost, not just the monthly repayment.

Does it add value?

There is no reliable Irish data on how much a garden room adds to a sale price. In practice:

• A solid, insulated room with certified electrics can be a selling point, especially for buyers who work from home.
• A cheap, damp or tired room can put buyers off, or be seen as something to remove.
• A room that broke the planning rules can cause problems at sale, when the buyer's solicitor asks for confirmation that it is exempt. Keep your measurements, photos and electrical certificate.

Local Property Tax

LPT for 2026 to 2030 is based on your home's market value on the valuation date of 1 November 2025. Revenue's definition of a residential property includes sheds, garages and other outbuildings. For how a garden room built after the valuation date is treated, check Revenue's LPT guidance before you file.

VAT on quotes

Some suppliers quote prices including VAT; others, especially for premium ranges, quote before VAT. The difference can be thousands of euro, so check every quote says which it is before you compare them.

Home insurance

• Tell your insurer about the garden room. It may need to be added to your buildings cover and rebuild sum.
• Contents in outbuildings, like laptops, gym kit and tools, are often covered only up to a set limit.
• Ask whether the policy requires locks of a certain standard on the garden room door.
• If you work there, check your employer's policy on equipment kept outside the house.

Tax relief

There's no tax relief or grant for building a garden room for personal use. If you work from home for an employer, you can claim Remote Working Relief on 30% of your electricity, heating and broadband costs for the days you work from home. See our garden office guide.