Tiny Homes and Granny Flats

The Government caused much ado in July 2024 when it announced it was seeking public submissions on potential changes to the Resource Management Act and Building Act legislation. These changes aim to enable the construction of granny flats without requiring resource or building consents. While a large number of submissions were received, any actual changes to the legislation enabling granny flat developments are not expected to take effect until sometime in 2025.

Although the prospect of allowing unregulated, low-risk development is exciting, the current rules for tiny homes or granny flats remain in effect, until the law changes. Any legislative amendment will still need to pass through the parliamentary process to become legally binding.

Under the current regulations, smaller secondary dwellings on properties require a building consent and, in many districts, a resource consent as well. Distinctions between what constitutes a dwelling, a sleepout with cooking facilities, or a mobile home (which cannot legally be towed on roads) can sometimes seem blurred. However, the rules usually boil down to the fact a space which could be occupied separately, and includes cooking facilities, is considered a dwelling. Once defined as a dwelling, all of the district rules relating to dwellings apply.

District regulations vary. Some districts allow minor dwellings in addition to a principal dwelling, provided specific size limits are met. However, in many districts, a second dwelling of any type on a single title is not permitted as of right.

When seeking resource consent for a second dwelling, councils typically consider several key factors. These include the location and quality of physical and legal access to the property, including whether a driveway upgrade is necessary to accommodate additional vehicles. Details on how the building will connect to council services for water, sewerage, and stormwater are also required. Councils must ensure their networks have sufficient capacity for an additional demand. Planning rules dictate the location of the building on the site, including boundary setbacks and outdoor living space requirements, to accommodate all potential residents.

Developers of tiny homes or granny flats should also be aware of additional costs. Development contributions can often be levied against these dwellings under the Local Government Act, adding significant expense to a project. Furthermore, second dwellings may result in increased rates during the next annual assessment, leading to ongoing costs.

Potential changes to legislation to facilitate low-risk development to occur will most definitely be something to make a fuss about. However, until changes to legislation have legal effect, it’s a case of requiring building consents and, in some case, resource consents, to support any tiny home dreams.