Thinking about building a granny flat? New Zealand is making it easier for people to build small, stand-alone homes – often called granny flats – thanks to a new piece of legislation called the Building and Construction (Small Stand-Alone Dwellings) Amendment Bill. Expected to take effect from early 2026. This Bill aims to reduce red tape while keeping construction safe and up to standard. Under the new rules, people will be able to build stand-alone, single-story homes up to 70 square metres without needing a formal building consent. This change could make it simpler and faster to build granny flats for extended family, additional rental income, or as starter homes – helping ease housing pressures in many parts of the country. To qualify, the building must meet specific conditions: Be simple in design and be fully compliant with the Building Code (covering safety, durability, energy efficiency, and more). It must be built or supervised by licenced tradespeople, such as Licenced Building Practitioners. And the homeowner must notify the Council before and after construction. While the need for a building consent will be removed, local Councils will still collect infrastructure contributions, such as fees for water, sewage, and transport, through a Project Information Memorandum (PIM). This ensures services and facilities can keep up with growth. At the same time, the Government is planning changes under the Resource Management Act. A new National Environmental Standard (NES) will allow one granny flat to be built on most residential or rural-zoned properties without needing resource consent, as long as the same owner holds both the main home and the flat. All up, these reforms are expected to enable around 13,000 new homes over the next 10 years. This is a practical step toward addressing the housing shortage, helping people create multigenerational homes, or add small rentals – without cutting corners on quality or safety. The key is that even though consent requirements are relaxed, building standards and consumer protections still apply. Have any other questions? Reach out to our team today!
