Setback rules eased for detached buildings under new building consent exemptions

The Government has updated the Building Act’s Schedule 1 exemptions to ease setback requirements for small, detached buildings, including sheds, sleepouts and workshops 

The changes, which came into force on 23 October 2025, are intended to simplify the rules for low-risk construction and reduce the need for formal building consent in straightforward cases. 

Under the revised exemptions, a 1m boundary setback is no longer required for certain small structures – provided other conditions are met. 

According to updated guidance published by the Ministry of Business, Innovation and Employment (MBIE), buildings up to 10m² are now exempt from the previous 1m setback rule, meaning they can be built closer to a boundary, as long as the building remains within the height and location limits set out in the Building Code and any applicable district plan. 

For larger detached structures, setbacks have been reduced but remain. Buildings between 10m² and 30m² previously needed to be as far from a boundary or residential building as they were tall – anything closer required a consent. Going forward, they only need to be located at least 1m from any legal boundary. This is to avoid a fire spread across boundaries affecting other properties. 

These structures must not include any potable water supply, bathroom or kitchen facilities. They must also remain single-storey and self-contained – separate from the main dwelling or any other buildings on the site. 

Clarification of technical conditions 

MBIE’s Building Performance division issued a set of technical notes to accompany the exemption changes. These documents specify construction requirements for foundations, framing, wall bracing, and weatherproofing for detached buildings built under the exemption. You can read them here. 

All exempt building work must still comply with the Building Code, regardless of whether a building consent is required and is covered by implied warranties. 

Implications for trades and property owners 

The updated setback rule provides greater flexibility for builders and homeowners wanting to construct small storage sheds, utility rooms or hobby spaces on tight or narrow lots. 

However, MBIE cautions that territorial authorities may still impose constraints under local district plans. Property owners and tradespeople are advised to check with their local council before starting construction to ensure they meet all planning and zoning requirements. 

MBIE also recommends documenting all exempt work – including design drawings, specifications and site photos – to support compliance if questions arise later, particularly in relation to fire safety, drainage or future property transactions.