New research has revealed that the North West is set to be the hardest hit by the new 'granny annexe tax'.

This tax, a result of changes to Multiple Dwellings Relief due in June, could set home buyers back thousands of pounds.

Fears for the freedom of older people have been raised.

The study conducted by Mobile Annexe Ltd disclosed a 600 per cent growth in searches for ‘stamp duty annexe’ in Cumbria after Jeremy Hunt's March announcement of his 'granny annexe tax’ plans.

Substantial rises in Lancashire (367 per cent), Greater Manchester (267 per cent), Cheshire (143 per cent) and Merseyside (114 per cent) followed.

Given the massive surge for information, there is potential for these new rules to impact thousands in the North West.

Previously, the construction of a mobile annexe on completion day meant homebuyers could get stamp duty tax relief.

This advantage will cease with the upcoming changes.

Speaking on these developments, Gary Clayden-Smith from Mobile Annexe Ltd stated: "The fact is, at a time when people are feeling the additional strain of the cost-of-living crisis, a way to save money has been removed.

"The research shows that the change has people worried, they’re looking for solutions, and things aren’t looking good."

Highlighting its practical use, he stated: "And that’s forgetting the practical benefits of an annexe, for example buying a smaller property with less bedrooms, but compensating for it with an annexe in the garden.

"Or using an annexe to allow older loved one’s support and independence, without the need for a care home."

Stressing the repercussions, Mr Clayden-Smith said: "Overall, the change not only hurt people’s finances during a cost-of-living crisis, but also make it more difficult to care for the people we love."