Lack of clarity over granny flat resource consent exemptions

The Government has confirmed that legislation enabling the consent-free construction of granny flats – small standalone dwellings up to 70m² – will come into effect in the first quarter of 2026. However, confusion over resource consents still reigns 

Alongside the building consent exemption, Housing and RMA Reform Minister Chris Bishop said there would be no requirement to obtain a resource consent. 

“Updated National Direction under the Resource Management Act (RMA) will remove the need for resource consents for granny flats and is expected to be in place by the end of the year,” Bishop said in a media release on 23 October. 

However, when contacted by Under Construction, the Ministry for the Environment (MfE) declined to confirm this. A spokesperson said that while resource consent exemptions are included in a proposed National Environmental Standard (NES) for granny flats, no final decision has been made. 

“The Building and Construction (Small Standalone Dwellings) Amendment Act 2025 has now passed, and the Government plans to make final policy decisions, and announcements, on the proposed NES later this year,” the spokesperson said. 

While Bishop stated that resource consents will no longer be required, when asked MfE reiterated that legislation to enact that change has not yet been passed – and remains in the proposal stage. 

When questioned by Under Construction, Minister Bishop doubled down and said: “My statement is correct.” He also said that following the NES consultation, which closed in July, officials had advised him on the changes in response to submissions. 

“This NES is now being finalised and will go to Cabinet for final approval before it comes into effect,” Bishop added. 

Should the NES be adopted, it would allow for one granny flat per site without resource consent across New Zealand – except in areas where more permissive rules already exist under district plans. 

“Some district plans already have rules relating to minor residential units that are more enabling than the standards proposed in the NES,” the discussion document states. “In addition, councils that have implemented the medium-density residential standards may have more lenient rules – for example, relating to setbacks.” 

What the proposed rules include 

Site coverage would still be subject to limitations. The NES proposes a 50% maximum site coverage in residential, mixed-use and Māori purpose zones. No maximum coverage is proposed for rural zones. 

Setback standards are currently proposed as follows: 

• 2m from the front, side and rear boundaries in residential zones. 

• 10m front and 5m side/rear boundaries in rural zones. 

The proposed NES would also prohibit councils from applying certain standards to minor residential units (MRUs), including: 

• Requirements for individual outdoor space. 

• Privacy, sunlight, or glazing controls. 

• Parking or vehicle access requirements. 

The Government says it intends to confirm the final policy settings and make further announcements on the NES later this year. 

13,000 new dwellings projected 

Building and Construction Minister Chris Penk said the consent exemption is expected to enable approximately 13,000 new granny flats over the next decade. 

“This means we’ll see more work for builders in the pipeline, without local councils managing unnecessary consenting burdens for simple building work,” Penk said.