We’re sure that there are a lot of Kiwis that are happy to know that new granny flat rules will mean that you will be able to build a granny flat up to 70m² without needing a building or resource consent.
That means:
- No lengthy council approvals
- Less cost and complexity
- More space for family
The Government have announced that work is underway to enable small standalone dwellings to be built without a building consent. This is expected to be force by early 2026 and it will be called a ‘building consent exemption’.
Building Consent Exemption for Small Standalone Dwellings (granny flats)
The proposed building consent exemption will allow small standalone dwellings up to 70 square metres in size (commonly known as granny flats) to be built without a building consent if:
- it has a simple design and meets the Building Code
- building work is carried out or supervised by licensed building professionals
- homeowners notify their local council before they commence building and once it is completed.
Find more information on the proposed building consent exemption conditions: HERE
The net floor area must be no greater than 70 square metres (including 70 square metres) and the building must be single story with a maximum floor level of 1 metre above ground, a maximum height of 4 metres above the floor level and the building must be 2 metres or more away from any other structure or legal boundary.
The building is classified as: Housing – detached dwelling (defined by Clause A1 of the Building Code). This means it must comply with all the requirements of the Building Code that apply to this classified use and be intended for a single household or family.
All work on a building must be carried out or supervised by licensed building professionals (Licensed Building Practitioners (LBPs) and licensed plumbers, drainlayers, gasfitters and electricians) and all building work must have a Record of Work (RoW), Certificate of Work (CoW) and the appropriate energy work certificate.
Why The New Granny Flat Rules Are Happening
The Housing Minister Chris Bishop, Associate Finance Minister Shane Jones and Building and Construction Minister Chris Penk have commented that it’s currently far too hard to build the homes New Zealanders need, with even the simplest dwellings tangling up homeowners and builders in red tape.
We’ve known that for years, and it’s almost like someone has injected these ministers with some ‘common sense’ and we like that.
These changes are designed to help make it faster and more affordable to build granny flats that can provide families with more housing options, particularly for grandparents, people with disabilities, young adults and workers in the rural sector.
Anything that can be done to streamline the rules and lower the costs to build granny flats is welcome. It’s a cost effective way of increasing housing availability and that directly translates to lower living costs for families and communities.
IMPORTANT NOTE:
If you start building before the proposed exemption comes into effect, or you have already built a small standalone dwelling, it needs a building consent. Even if it meets the proposed building consent exemption criteria.
Do your research on the new granny flat rules before you start to build.
You can read more about the new granny flat rules on the Government website.
Get Finance For Your New Granny Flat
In many cases we will be able to arrange finance as a top-up to your existing mortgage.
Of course this is not always going to work or be the best option.
- You might want to take the opportunity to review your current home loan and refinance if there is a better option.
- You might want to try and get some of the lending using the special healthy homes packages offered by some banks. Some of the banks offer up to $50,000 at 0% interest for 5-years and so it’s worth seeing if these can apply to you.
- Sometimes you might need to get a separate loan for the build, and then refinance on completion.
Speak to one of the team at Mortgage Managers and they will be able to advise on all the options. It’s always good to plan in advance and even get the finance ready, remembering that these new granny flat rules will not be in law until early 2026.
