New Law to Let Kiwis Build 70m² Granny Flats Without Consent by 2026

Housing and RMA Reform Minister Chris Bishop said the current system makes it too hard and expensive for New Zealanders to build the homes they need.

In a landmark step to expand housing options and ease the cost of living, the New Zealand Government has passed new legislation allowing homeowners to build granny flats up to 70 square metres on their properties without requiring building consent, starting from Q1 2026. This reform delivers on a significant commitment in the Government’s Quarter Four (Q4) Action Plan and represents a key milestone in the Coalition Government’s housing strategy.

Simplifying the Path to Housing

Housing and RMA Reform Minister Chris Bishop said the current system makes it too hard and expensive for New Zealanders to build the homes they need.

“Even the simplest dwellings are subject to complicated and costly consent processes. We’re cutting the red tape and making it faster and more affordable for Kiwis to build additional dwellings on their land,” Mr Bishop stated.

Under the new legislation, granny flats of up to 70m²—around the size of a one- or two-bedroom small home—will be exempt from building consent requirements provided they meet specific criteria. These dwellings will need to:

• Be simple in design

• Be constructed by authorised building professionals

• Fully comply with the New Zealand Building Code

• Be registered with the local council before and after construction

This initiative is expected to reduce costs, increase housing supply, and provide flexible living options for multigenerational families, people with disabilities, rural workers, and first-time renters or buyers.

Benefits for Families and Communities

The reform is expected to unlock housing for a wide range of groups, including:

• Elderly relatives, such as grandparents needing proximity to care and family support

• Young adults unable to afford private rentals or looking to save for their first home

• Disabled individuals requiring independent but accessible living spaces

• Seasonal and rural workers, for whom accommodation near worksites is crucial

• Extended whānau, for whom living close together supports cultural and familial ties

“For whānau who live in extended family situations, this is an affordable option,” said Associate Finance Minister Shane Jones, who described the reform as the result of two decades of advocacy. “This legislation has practical applications for rural regions, staff housing providers, and isolated communities like the Chatham Islands.”

Expected Boom in Construction Activity

Building and Construction Minister Chris Penk praised the reform as not only a housing policy success, but also an economic win for the construction industry.

“The exemption is expected to deliver roughly 13,000 granny flats over the next decade,” said Mr Penk. “That means more work for builders and less administrative burden on local councils, which can then focus on complex builds where oversight is truly needed.”

The Government expects the reform to boost productivity by streamlining processes, enabling skilled workers to spend more time building and less time on paperwork.

What Homeowners Need to Know

While the new rules eliminate the need for a formal building consent, there are still conditions and responsibilities for homeowners:

• Design compliance: Flats must meet the Building Code, including structural safety, insulation, fire protection, and sanitation.

• Qualified professionals: Only authorised builders and professionals can undertake the construction.

• Council notification: Homeowners must notify their local council before construction begins and after completion for records and compliance purposes.

“Homeowners can start planning now and use their summer break to talk to designers and builders about what’s possible under the exemption,” said Mr Penk. “It’s not too early to start preparing.”

Resource Management Changes to Follow

To support the building consent exemption, the Government will also introduce a new National Direction under the Resource Management Act (RMA). This will remove the requirement for a resource consent for granny flats, further clearing regulatory hurdles for homeowners. The RMA directive is expected to be finalized by the end of 2025, in alignment with the building consent changes.

Guidance and Tools on the Way

To ensure a smooth rollout, the Government is developing a suite of forms, templates, and guidance materials for homeowners, councils, and building professionals. These will be made publicly available before the exemption takes effect in early 2026.

“We’ll have more to say on this soon,” Penk confirmed. “But our message is clear: if you’ve been thinking about building a granny flat, now is the time to start planning.”

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With high property prices, rental shortages, and aging infrastructure placing pressure on New Zealand's housing system, the granny flat exemption represents a commonsense solution backed by a coalition committed to housing reform, economic growth, and practical outcomes.