Granny flat rules enacted

Kiwis can now build granny flats in their backyards without a building or resource consent.

RMA Reform and Housing Minister Chris Bishop says the now-formalised, long-signalled reforms are a major step in the push for increased housing supply and greater flexibility for families.

“It’s an exciting day for Kiwis across the country who have been waiting for the green light to build a granny flat on their property without going through costly and time-consuming consent processes,” Bishop says.

He says red tape has increased local councils’ workloads and blocked simple, affordable dwellings that meet families’ housing needs.

The Building Act and Resource Management Act updates remove the need for a building consent and a resource consent for small standalone dwellings up to 70 square metres in size, also known as granny flats.

“After extensive public consultation last year, it is exciting to see these much-needed changes finalised following feedback from New Zealanders.”

Associate Finance Minister Shane Jones says the exemptions will save New Zealanders up to $5,650 in direct costs when building a granny flat and speed up the process by up to 14 weeks.

“We know Kiwis have been feeling the strain of the cost of living, so it’s great to see this long-awaited change, which will provide practical housing solutions that reduce costs for extended families, small communities, and even businesses that provide staff accommodation, such as farms,” Jones says.

Building and Construction Minister Chris Penk says even with the building consent exemption, Kiwis need to remember that it applies only to simple designs that meet the Building Code, and the work must still be carried out by authorised professionals.

He says the MBIE has published guidance on its website regarding the change.

“I look forward to seeing a boost in productivity in the construction sector now that the exemption is in place, with as many as 13,000 more granny flats expected over the next decade.

“That means more jobs for builders, less stress for councils, money saved for homeowners, and greater choice for families and their dependents.”

The new granny flat exemption has been a long time coming. It reflects growing pressure on New Zealand’s housing market to deliver faster, cheaper, and more flexible living options.

The reform has been widely signalled by the Government over the past year as part of its broader housing and planning overhaul.

While the change is being celebrated as a practical win for property owners, it is also designed to reduce workload for local councils, which have faced increasing pressure from consent applications even for relatively simple builds.