Local Media

Here’s everything Kiwi homeowners, landlords, and investors need to know.

What Are the New Granny Flat Rules in NZ?

The New Zealand Government has announced two major reforms:

1. Building Consent Exemption

• Homeowners will be able to build granny flats up to 70m² without needing building consent if:
• The flat meets the NZ Building Code,
• The work is carried out or supervised by a Licensed Building Practitioner (LBP),
• You notify the council before and after the build.
• This reduces paperwork, delays, and building consent costs.

2. Resource Consent Exemption

• A new National Environmental Standard (NES) will require all councils to allow small secondary dwellings on residential and rural-zoned land without resource consent.
• This means consistent rules nationwide, reducing the time and cost to get started.

This does not void any development contributions at this stage that contributes to council’s cost of infrastructure.

Benefits of the New Granny Flat Rules

Building a granny flat in New Zealand is about to get a whole lot easier. Here are some key benefits:

• Faster approvals: Less red tape means quicker builds.
• More affordable housing: Ideal for families, downsizing, or rental income.
• Supports multi-generational living: Keep family close, but with privacy.
• Rental potential: Earn income from a standalone minor dwelling. (Dependant on RTA classification)
• Boosts for local trades: More work for Licensed Building Practitioners.

Possible Downsides to Consider

While these changes are promising, there are still a few challenges. Just to name a few:

• Infrastructure pressure: More dwellings can strain local water, sewage, and roads.
• Neighbour privacy: Some residents may have concerns about density.
• Quality risk: Less oversight could lead to shortcuts if builders aren’t properly managed.
• Site restrictions remain: Some properties may still require consents due to size, shape, or hazards.
• Possibly a Project Information Memorandum (PIM) would be the means of triggering a new Granny flat.

Do You Still Need to Follow Boundary Rules?

Yes, at least for now. Until the National Environmental Standard comes into full effect, existing council rules still apply, including:

• Setback requirements: Most councils require 1- 1.5m distance from the boundary.
• Height-to-boundary rules: You may be restricted in building height near your fence line.
• Site coverage limits: You can only build on a certain percentage of your land.
• Easements and drainage: You can’t build over certain underground services or shared accessways.

So, even without consents, you still need to follow local zoning and boundary rules or apply for a variation.

This is a step in the right direction. But like most new policies, there are still some grey areas to work through. Getting it right will mean good communication and clear education for property owners, builders, councils, and everyone in between.

We’re keeping a close eye on when these changes will roll out and how each council plans to adopt them. Until then, it’s a bit of a waiting game.