Granny Flats Get Green Light Nationwide as Consent-Free Builds Become Law

RMA Reform and Housing Minister Chris Bishop said the move delivers practical housing solutions at a time when affordability pressures remain high.

 

New Zealanders can now build granny flats of up to 70 square metres without needing building or resource consents, marking a major milestone in the Coalition Government’s push to expand affordable, flexible housing options across the country.

The changes take effect today following updates to the Building Act and new National Direction under the Resource Management Act (RMA), removing long-standing regulatory barriers that have made small, standalone homes costly and slow to deliver.

RMA Reform and Housing Minister Chris Bishop said the move delivers practical housing solutions at a time when affordability pressures remain high.

“It’s an exciting day for Kiwis who have been waiting for the green light to build a granny flat without going through expensive and time-consuming consent processes,” Bishop said.

“For too long, red tape has blocked simple, affordable dwellings that meet families’ needs, while piling extra workload onto councils. That changes today.”

Faster Builds, Lower Costs

Under the new rules, homeowners can construct simple, standalone dwellings up to 70m²—commonly known as granny flats—without needing either a building consent or a resource consent, provided the design meets the Building Code and work is carried out by authorised professionals.

Associate Finance Minister Shane Jones said the change fulfils a key commitment in the New Zealand First–National Coalition Agreement and delivers immediate financial relief.

“These exemptions will save homeowners up to $5,650 in direct costs and cut build timelines by as much as 14 weeks,” Jones said.

“With cost-of-living pressures hitting families hard, this reform provides real, practical housing options for extended families, rural workers, and businesses needing staff accommodation, including farms.”

Boost for Construction and Housing Supply

Building and Construction Minister Chris Penk said the reform is expected to lift productivity in the construction sector while easing pressure on local councils.

“Even with the exemption, these builds must meet the Building Code and be completed by qualified professionals,” Penk said.

“To support this, MBIE has published clear guidance and templates to help homeowners, councils, and building professionals understand how the exemption works and what responsibilities apply.”

The Government estimates the change could result in up to 13,000 additional granny flats over the next decade, creating new work for builders while expanding housing choice nationwide.

“That’s more homes, more jobs, less stress on councils, and more flexibility for families and their dependents,” Penk said.

The Government says the reform strikes a balance between safety, speed, and affordability—unlocking thousands of small homes that can be delivered quickly to help meet New Zealand’s housing needs.