Upcoming Changes to Minor Dwelling Rules in New Zealand: What You Need to Know

Big news for homeowners, developers, and investors: the New Zealand government is set to roll out significant changes to the rules governing minor dwellings, commonly known as "granny flats." These updates aim to simplify the building process, reduce costs, and increase housing availability across the country.

What's Changing?

1. Building Consent Exemption

Starting in early 2026, you’ll be able to build a small standalone dwelling—up to 70 square metres—without needing a building consent, provided certain conditions are met:

• Simple Design: The structure must have a straightforward design that complies with the Building Code.

• Licensed Professionals: Construction must be carried out or supervised by licensed building practitioners.

• Council Notification: Homeowners must notify their local council before starting construction and upon completion.

2. Resource Consent Simplification

A new National Environmental Standard (NES) under the Resource Management Act will require all councils to permit a granny flat on sites in rural and residential zones without the need for a resource consent. This move aims to standardize rules across the country and eliminate the need for individual council plan changes.

Key Conditions to Keep in Mind

Even with these exemptions, certain criteria must be met:

• Size Limit: The dwelling must not exceed 70 square metres of internal floor area.

• One Per Property: Only one minor dwelling is allowed per principal residential unit on the same site.

• Ownership: The minor dwelling must be ancillary to and held in common ownership with the main dwelling.

• Design Standards: Compliance with specific design standards, including building coverage and boundary setbacks, is required.

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Infrastructure Contributions Still Apply

While the building and resource consent processes are being streamlined, infrastructure charges (also known as development contributions) will still apply. These charges help fund local infrastructure like transport, water, and community facilities and will be processed through the Project Information Memorandum (PIM) system.

Timeline and Implementation

• Mid-2025: Legislation introducing the building consent exemption is expected to be introduced.

• End of 2025: The new National Environmental Standard under the RMA is anticipated to be in place.

• Early 2026: The building consent exemption and NES are expected to come into force.

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What This Means for You

These changes are designed to make it easier and more affordable to add a minor dwelling to your property, whether for family use or as a rental opportunity. However, it's crucial to ensure that your project meets all the specified criteria to qualify for the exemptions.

If you're considering building a minor dwelling, now is a good time to start planning. Consult with licensed building professionals and your local council to ensure compliance with the upcoming regulations.

For more detailed information. Building and Construction (Small Stand-alone Dwellings) Amendment Bill https://www.legislation.govt.nz/bill/government/2025/0166/6.0/LMS1442172.html