If you’ve ever considered adding a granny flat to your property, now might be the best time to start planning. With major legislative reforms on the way, New Zealand’s government is actively making it easier for homeowners to build small, standalone dwellings—especially in suburban areas.
Here’s a breakdown of the current legal position, what’s changing, and what it all means for you.
The Current Situation: Consents Required
Under existing rules, building a granny flat—defined as a secondary dwelling on a property—typically requires both:
- Building consent, to ensure compliance with the Building Code.
- Resource consent, depending on your property’s zoning and local council requirements.
These processes can be expensive, time-consuming, and often act as a barrier for people looking to create more space for whānau or generate rental income.
What’s Changing: Consent-Free Granny Flats
In 2024, the government introduced the Building and Construction (Small Stand-alone Dwellings) Bill. As of June 2025, this bill has passed its first reading in Parliament and is expected to take effect in early 2026.
Here’s what the law will allow:
- No building consent required for granny flats up to 70 square metres, as long as:
- The design is simple and complies with the Building Code.
- The work is either done or supervised by licensed building practitioners (LBPs).
- The local council is notified both before and after construction.
In parallel, a new National Environmental Standard (NES) is being developed to remove the need for resource consent in most zones, including residential, mixed-use, rural, and Māori purpose zones.
What This Means for Suburban Properties
These changes represent a major shift in housing policy and will have significant impacts for suburban homeowners:
- Less red tape – Getting started on your build will become far easier and faster.
- Lower costs – With fewer approvals needed, upfront costs are reduced.
- More flexibility – Granny flats can be used for whānau, home offices, or rental income.
- More housing – This reform opens the door to increased density in a way that still respects the suburban character of communities.
However, it’s not a total free-for-all. Councils may still charge development contributions to support local infrastructure, and all construction must comply with the Building Code.
Consumer Protections Still Apply
Even with the removal of the building consent requirement, consumer protections under New Zealand law remain in full force. These include:
- Building Code compliance – All work must still meet Code requirements for structure, weathertightness, insulation, durability, and fire safety.
- Use of Licensed Building Practitioners (LBPs) – Consent-free builds must still be completed or supervised by qualified professionals, ensuring accountability and technical competence.
- 10-Year Implied Warranty – The Building Act includes warranties for residential building work, whether consented or not. These cover defects in materials, workmanship, and Code compliance.
- Contractual protections – Homeowners are still encouraged to have written building contracts. The Construction Contracts Act 2002 provides rights for payment schedules, dispute resolution, and retention of funds.
- Council oversight – While building consent may not be needed, councils must still be notified, and they may inspect works or require information to ensure compliance.
In short, while the process is becoming simpler, safeguards remain strong to ensure homeowners are protected and that buildings are safe and durable.
Planning Ahead
At Built Construction, we’ve helped many clients plan and build quality minor dwellings across the Bay of Plenty. With these legal changes coming, now is the time to start designing your granny flat.
Whether you’re planning for extended whānau, passive income, or long-term flexibility—our local team of Tauranga Builders can guide you through the design, compliance, and build process with transparency and care.
Ready to explore your options?
Contact us for a consultation or visit our gallery to see past projects.
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