Home sweet tiny home: Take a look inside this Southern Highlandsc tiny house | PHOTOS

Living in a small space isn't everyone's cup of tea, but for some people there's huge appeal.

As Australia's appetite for tiny houses continues to grow, opportunities to downsize are increasing in the Southern Highlands.

One tiny house at Exeter, which is 4.2m long by 2.2m wide by about 4m high, is on the market for $55,000.

Moss Vale residents Lisa Lick, her husband Steve and daughter Georgia built the dwelling as a family through their businesses Steve Lick Timberworks and Tiny By Design.

This Exeter tiny house is 4.2m long by 2.2m wide by about 4m high. Photo: Steve Lick Timberworks

This Exeter tiny house is 4.2m long by 2.2m wide by about 4m high. Photo: Steve Lick Timberworks

Mrs Lick said the tiny house lifestyle was appealing for people in many situations. "The housing market is so difficult to get into for young couples now. It's seen as a viable alternative," she said. "You can either live in them until you can transition or it can be good for people who want to travel.

"They're suitable for teens who want to transition out of home and still want to be near home so they're independent. There are a lot of uses for the 'tinies', they fill a gap in the market I think."

The Lick family used a range of recycled materials to build the house, including stained glass for some of the windows. Photo: Steve Lick Timberworks

The Lick family used a range of recycled materials to build the house, including stained glass for some of the windows. Photo: Steve Lick Timberworks

The Exeter tiny house features a 15-amp caravan plug-in, a loft-style bedroom, a gas cook top in the kitchen area, a camping fridge-freezer and a provision for gas hot water.

In the bathroom there is a composting toilet as well as a shower which is lined with a chequerplate and has a removable cedar wood bath mat. The house is an on-grid tiny house as it is connected to water and power mains, however some dwellings can be built for off-grid lifestyles.

I want a tiny house lifestyle. What do I need to know?

The cost of buying a tiny house can range from $50,000 to $100,000, depending on the size and other factors.

There are several steps you need to go through before you can begin your new lifestyle, including gaining approval from Wingecarribee Shire Council. A spokesman advised people to call the council on 4868 0888 to discuss their individual needs.

"What we advise for people investigating [living in a tiny house] is to call, ask to speak to the duty certifier and discuss their individual circumstances as well as any particular arrangements," the spokesman said.

Approval will depend on a range of factors, including whether the tiny house is a principal or secondary dwelling, or if it is a temporary or permanent arrangement.