Government proposes making it easier to build granny flats

  • 17/06/2024
A tiny home.
A tiny home. Photo credit: Getty Images

The Government has announced a step towards making it easier to build granny flats across New Zealand.

It's publishing a discussion document on Monday with proposed changes to the Building Act and the resource management system, which would require councils to allow small structures up to 60 square metres to be built without a resource consent. 

Acting Prime Minister Winston Peters said this will make housing more affordable for families. 

"High housing costs have a greater impact on Māori, Pasifika, and people with disabilities, as well as seniors - so unlocking the space in the backyards of family members opens the door to new ways of living," he said in a statement on Monday. 

"We know granny flats are a great option for seniors, but they're also increasingly popular with other families such as those who want homes where their university-age children can live at home but maintain some privacy and independence, or families who want to provide extra support to a loved one." 

RMA Reform Minister Chris Bishop said the proposed National Environmental Standard (NES), that requires 'minor residential units' are permitted, is needed due to a lack of consistency and different standards across the country. An NES also means changes can come into force quickly, he added. 

"Removing the regulatory red tape will not only speed up the build process, but it is also estimated to save up to $6500 just in the standard building and resource consenting fees per build, not to mention all the savings in time and resource," Bishop said. 

"There will be safeguards to ensure these granny flats continue to meet New Zealanders' expectations for building performance and quality, and appropriately manage environmental effects. We want these to be safe, healthy and durable homes." 

The discussion document proposes a new schedule is added to the Building Act 2004 to provide for simple standalone houses up to 60 square metres in size.

These buildings still need to comply with the Building Code. The criteria would require the small house to be built by trusted workers, to a simple straightforward design, and be notified to councils.

The building system proposals in the discussion document released today include: 

  • the conditions and criteria for these homes to be exempt from a building consent 
  • assessment of the associated short and long-term benefits, costs and risks 
  • sufficiency of occupational licensing requirements to ensure all building work will meet the building code 
  • potential barriers to the uptake of the proposed exemption 
  • time and money savings compared to the status quo 
  • additional or alternative ideas to the proposed options. 

Final policy decisions will be made later this year, with the legislative changes expected to be in place from mid-2025. 

Consultation opens on Monday, June 17 and submissions can be received until 5pm on Monday, August 12. 

The public can provide feedback online or by emailing grannyflats@mbie.govt.nz