Legislation this month will soon allow Kiwis to build granny flats up to 70m sq in their backyards without a building consent, unlocking more housing choices and delivering on a key coalition Government commitment in the Q4 Action Plan.

The building consent exemption for granny flats up to 70m sq would be given effect by the end of this year by the Building and Construction (Small Standalone Dwellings) Bill and associated regulations, which passed into law this month.

“It’s currently far too hard to build the homes New Zealanders need, with even the simplest dwellings requiring complicated and costly consent processes,” RMA Reform and Housing Minister Chris Bishop said.

“We know increasing housing availability directly translates to lower living costs for our communities. That’s why the coalition Government is making it faster and more affordable to build granny flats up to 70m sq.”

Bishop said these simple dwellings had the potential to be part of the solution for providing families with more housing options.

“This will be great for grandparents, people with disabilities, young adults and workers in the rural sector.”

In place by end of 2025

To support this change to the Building Act, updated National Direction under the Resource Management Act (RMA) would remove the need for resource consents for granny flats “and is expected to be in place by the end of the year”, Bishop said.

Associate Finance Minister Shane Jones said he’d been on these changes for two decades and was delighted the New Zealand First-National Coalition agreement had delivered a common-sense housing solution.

“For whānau who live in extended family situations, this is an affordable option.

“Companies that provide accommodation for their staff, and for small communities such as the Chatham Islands, this legislation will have many practical applications.”

Building and Construction Minister Chris Penk said it was also a positive step for boosting productivity in NZ’s construction sector.

Roughly 13,000 more

“The exemption is expected to deliver roughly 13,000 more granny flats over the next decade, meaning we’ll see more work for builders in the pipeline without local councils managing unnecessary consenting burdens for simple building work,” Penk said.

“Local councils will be freed up to focus their attention on more complex building work where the need for an inspection and thorough consenting processes is much greater.”

However, Penk said even with the building consent exemption in place, it’s important Kiwis remember they would only be eligible for the exemption if their granny flats were simple in design, met the Building Code and building work was carried out by authorised building professionals.

Notify council beforehand

“Home owners will also need to notify their local council before they begin building and once the granny flat is completed.”

Penk said the new exemption would come into effect in the first quarter of 2026, but Kiwis could start planning now.

“A good place to start is having conversations with designers and builders to understand what’s possible on your property under the exemption.”

Also, to support local infrastructure in growing communities, councils could charge development contributions for granny flats when issuing a Project Information Memorandum (PIM).

Meanwhile, the Government was working quickly to ensure councils, home owners and building professionals had access to the necessary forms, templates and guidance before the exemption comes into effect early next year.