Granny flat consent exemption takes effect, opening door to faster builds

Homeowners now have a simpler pathway to adding a granny flat, with new exemptions removing the need for building and resource consents for certain small standalone dwellings.

As of 15 January, New Zealanders can build a granny flat of up to 70 square metres without requiring consent, provided the design meets the Building Code and the work is carried out by authorised professionals. The change follows updates to the Building Act and the introduction of a new National Direction under the Resource Management Act.

The Government says the exemption could save homeowners up to $5,650 in direct costs and speed up the building process by as much as 14 weeks. It is intended to make it easier to deliver simple, affordable housing solutions for families.

Red tape reduced to support housing supply

RMA Reform and Housing Minister Chris Bishop said the changes were long overdue. “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,” he said.

“For too long it has been overly difficult and expensive to provide the housing solutions New Zealanders need. Red tape has increased the workload for local councils and blocked simple, affordable dwellings that meet families’ housing needs.”

Building and Construction Minister Chris Penk said the reform would lead to the construction of up to 13,000 additional granny flats 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.”

To support the transition, the Ministry of Business, Innovation & Employment has published guidance and templates to help homeowners, councils and building professionals understand how the exemption works in practice.

Paying for a granny flat

While the consent exemption simplifies the process, homeowners still need to think carefully about how to fund a build. Common options include:

• Using home equity. A loan top-up can spread the cost over time.
• Refinancing. Some owners choose to refinance to release equity at competitive rates.
• Savings and staged builds. Combining savings with lending can reduce borrowing needs.

A granny flat can provide flexible living arrangements, potential rental income or long-term family support, but it’s important to structure the finance correctly from the outset.

Ensuring your finance is structured correctly is a vital part of the planning process for a granny flat. Get in touch to discuss your options and make sure your plans stack up financially.