Granny flat builds will soon become “faster and more affordable”

The Government will go further than it earlier proposed to make it easier to build granny flats by increasing the maximum size allowed to be built without consents from 60sqm to 70sqm.

The Government will introduce an amendment to the Building Act in the middle of this year that will exempt granny flats from needing a building consent if:

• The granny flat has a simple design and meets the Building Code.
• Building work is carried out by authorised building professionals.
• Homeowners notify their local council before they start building and once the project is completed.

Estimates suggest these proposed changes will result in an extra 13,000 dwellings being built over the next decade.

The proposed consent exemption will apply only to granny flats built after the exemption is in force; not to any building work currently in progress or existing structures that fit the specifications of a granny flat under the final exemption criteria.

Current processes are too bureaucratic

Housing Minister Chris Bishop said it was currently too hard for people to build the homes they need, with even simple projects involving lots of red tape.

“That’s a big part of the reason why we’re replacing the Resource Management Act (RMA) with new laws based on property rights. At present, people who want to build a simple standalone dwelling on their properties need a building consent under the Building Act. In many cases, a resource consent under the Resource Management Act is required as well. These processes are complicated, time-consuming and costly,” he said.

“Making it faster and more affordable to build granny flats provides families with more housing options, particularly for grandparents, people with disabilities, young adults and workers in the rural sector. We know increasing housing availability directly translates to lower living costs for our communities.”

“A new National Environmental Standard (NES) under the RMA will be developed and in place by the end of this year to give effect to our proposals, timed to take effect with changes to the Building Act. This NES will require all councils to permit a granny flat on sites in rural and residential zones without the need to gain a resource consent.”

Do your clients need a construction loan?

As you've just read, these new rules have yet to take effect, so please let your clients know they should carefully evaluate their options if they're thinking about constructing a granny flat in the near future.

Whether your clients want to build a small granny flat or a larger house, I can help them finance the project, so please refer me to anyone who is planning to do a new build.