Granny flat changes going ahead

Government moves forward with changes to small standalone dwelling (granny flat) building consent rules. Below is government announcement released 7 April  

The Government is making it easier to build small standalone dwellings known as ‘granny flats’, improving affordable housing options and ensuring Kiwis have safe, healthy and durable homes to live in. 

Giving New Zealanders more housing options, such as high-quality smaller homes, means we can: 

• Support families with different housing needs and budgets. 

• Cater for Aotearoa New Zealand’s changing population and ways of living.  

Changing the building consent rules 

Until the law changes, small standalone dwellings still need a building consent. 

Work is underway to enable small standalone dwellings to be built without a building consent, expected to be force by early 2026. This is known as a ‘building consent exemption’.  

Find information about the building consent process 

Building consent exemption for small standalone dwellings (granny flats) 

The proposed building consent exemption will allow small standalone dwellings up to 70 square metres in size, commonly known as granny flats, to be built without a building consent if: 

• It has a simple design and meets the Building Code. 

• Building work is carried out or supervised by licensed building professionals. 

• Homeowners notify their local council before they commence building and once it is completed.   

Find more information on the proposed building consent exemption conditions: 

Proposed conditions for small standalone dwelling building consent exemptions 

Current building consent rules for small standalone dwellings 

Until the law changes, small standalone dwellings still need a building consent. 

If you start building before the proposed exemption comes into effect, or you have already built a small standalone dwelling, it needs a building consent. Even if it meets the proposed building consent exemption criteria. 

If you are unsure whether your building work needs a building consent, check with your local council. 

Find information about the building consent process 

Funding infrastructure  

To support councils with local infrastructure funding for growing communities, the Government has agreed that infrastructure charges (also known as development contributions) will apply to small standalone dwellings. 

These will be charged by the council through the Project Information Memorandum (PIM) process. 

Find information on Project information memoranda (PIMs) 

Councils use funds from infrastructure charges to help pay for the increased demand new homes place on infrastructure. This typically includes transport, water, wastewater, stormwater, parks and reserves, and community facilities such as libraries. 

Resource Management Act 

Changes relating to the resource consent system are being managed through the Ministry for the Environment (MfE).  

The Government aims for both the building system and resource management system changes to be progressed alongside each other.  

Making it easier to build granny flats – Ministry for the Environment 

Background to the changes 

What do these changes aim to achieve? 

Building in Aotearoa New Zealand is largely regulated by two pieces of legislation:  

1. The Building Act 2004 (Building Act) – sets the rules for the construction, alteration, and demolition of new and existing buildings. 

1. The Resource Management Act 1991 (RMA) – sets requirements for the management of land use and effects on the environment. 

Building work may require both a building consent and resource consent, depending on what is proposed and where building is to occur. Although they manage different risks and effects, the Building Act and the RMA collectively determine which rules a development is subject to. 

The changes to the Building Act and RMA aim to increase the supply of affordable housing options for all New Zealanders.  

While small standalone dwellings can be referred to as ‘granny flats’, the proposals are not limited to dwellings for older New Zealanders or family members.  

Managing the risks 

All building work in Aotearoa New Zealand must comply with the Building Code, even if it is exempt from a building consent. This will include any building work covered by the proposed exemption for small standalone dwellings. 

Public consultation on granny flat changes 

In 2024, the Ministry of Business, Innovation and Employment (MBIE) and the MfE ran the ‘Making it easier to build granny flats’ public consultation.  

This consultation helped to identify the potential risks relating to building small standalone dwellings, referred to as ‘granny flats’ in the consultation, without building or resource consents.  

We carefully considered all the feedback provided through public consultation to make sure the path forward: 

• Strikes the right balance between enabling growth in our communities and managing risks. 

• Provides more options for affordable housing. 

The proposed building consent exemption will allow small standalone dwellings up to 70m2 in size, commonly known as granny flats, to be built without a building consent if: 

• If it has a simple design and meets the Building Code. 

• Building work is carried out or supervised by licensed building professionals. 

• Homeowners notify their local council before they commence building and once it is completed.   

The changes will manage the risk of building failure, ensure consumers are protected, fairly assign liability and avoid environmental risks, for example from natural hazards. 

Improving occupational licensing to support homeowners 

To support building work being done right the first time, the Government is improving occupational licensing that applies to building tradespeople and their work.  

Changes to occupational licensing is intended to: 

• Encourage tradespeople to complete quality building work. 

• Give consumers confidence in the tradespeople working on their homes. 

Improving occupational licensing to help homeowners 

You can find out more about the ‘Making it easier to build granny flats’ public consultation and the feedback in the submissions report on the MBIE website. 

Making it easier to build granny flats consultation (2024) — mbie.govt.nz 

Summary of submissions report — Making it easier to build granny flats consultation (2024) — mbie.govt.nz 

Resources 

Consumer protection 

Consumer protections for residential building work under the Building Act 2004 will apply to small standalone dwellings. This includes: 

• A 12-month defect repair period. 

• A 10-year implied warranty period. 

• Pre-contract disclosure requirements. 

• Requirements for written contracts for building work over $30,000. 

Find out about consumer protection for homeowners: 

• Consumer protection measures for homeowners 

• Due diligence 

• Pre-build and written contracts 

• During the build 

• After the build 

• Resolving problems 

• Consumer protection resources