It appears the answer is yes… habitable sheds are popping up in the UK.

“A fascinating business proposition in Oxford is moving the shedworking/tiny houses story forward.

As reported by the BBC Oxford businessman Robin Swailes is marketing £25,000 shedlike pods (3m x 2.5m) with electricity, kitchen, bed, toilet, shower, underfloor heating and running water as small homes for those struggling to get onto the property ladder in the city.”

via Shedworking: Could garden offices solve the UK housing problem?