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Granny Flats to Be Allowed, Without Consent: What Homeowners Need to Know

By Anna Bensemann, Senior Planner, Baseline Group | May 12, 2025

The Government has recently announced that granny flats of up to 70 square meters in area will be allowed, without requiring building consent or resource consent. This is part of a broader effort to increase housing supply, reduce development costs, and cut through red tape that is seen as hindering growth in New Zealand.

While the move has been welcomed by many as a step toward improving housing affordability, the announcement leaves several important questions unanswered, particularly around how the policy will be implemented and enforced.

The Government has confirmed the exemption will apply to granny flats which are secondary to a dwelling on a property already containing a home, and all construction works must still comply with the Building Code. In addition, all work must be carried out or supervised by a Licensed Building Practitioner. The changes are expected to come into effect in early 2026. Until then, the current planning and building regulations remain in place.

Several critical details have yet to be confirmed, including how granny flats will be permitted and how they will be monitored for compliance. Further questions, such as whether planning rules such as minimum land areas, open space or site coverage provisions, or outdoor living space provisions, will still apply to Granny Flats in our urban zones. The government has also not confirmed if a resource consent will be required for effluent discharge from granny flats in rural areas, lacking council infrastructure, as they do currently.

While the exemption from consents is intended to lower costs, one significant expense remains: Development Contributions (also known as financial or reserves contributions). These charges can add tens of thousands of dollars to a project and may still apply under the new system.

Councils will likely require some form of notification or registration process to assess whether development contributions are payable. As such, while formal consents may no longer be needed, council involvement will still be necessary.

A clear message from the Government is that the laws have not changed yet. Homeowners should not begin construction based on the proposed exemptions, as any builds started before the rules come into force will not qualify for the benefits. Until legislation is passed and details are finalised, all existing planning and building requirements remain in full effect.

This announcement represents a significant shift in the way small-scale housing developments may be handled in the future. If implemented effectively, the policy could remove key barriers for homeowners looking to add a secondary dwelling, support multi-generational living, or generate rental income.

However, the success of the initiative will depend heavily on how the rules are finalised, how councils respond, and whether the intended streamlining actually reduces bureaucracy, or simply replaces it with new processes.

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