The Government has confirmed that homeowners will soon be able to build granny flats up to 70 square metres without needing building or resource consents. The reform, a key plank of the National–NZ First coalition agreement, aims to reduce red tape and boost housing supply by making it easier and more affordable to build minor dwellings on existing properties.
The change follows a wave of public support and is backed by nearly 2,000 submissions during consultation run by the Ministry of Business, Innovation and Employment (MBIE) last year. Initially, the Government proposed a 60 square metre limit, but extended it to 70 square metres in response to feedback.
“It was the public submissions asking, ‘Why not a bit bigger?‘, and I mean, it’s a fair question, where you draw the line,” said Building and Construction Minister Chris Penk. “You actually don’t have any greater risk at a slightly larger footprint of the building.”
The new 70 square metre cap significantly expands the functional potential of these small homes. While 60 square metres typically allows for a one-bedroom layout, 70 square metres can accommodate two bedrooms—making the units more suitable for families, elderly relatives, or young adults seeking independence.
Simple Builds, Still by the Book
Under the proposed amendment to the Building Act, expected to be introduced in mid-2025, granny flats will be exempt from building consents if they meet specific criteria. The dwelling must have a simple design, comply with the Building Code, be built by authorised professionals, and be registered with the local council both before and after construction.
Importantly, the exemption applies only to new builds that follow the final specifications; it does not cover any existing or currently underway projects.
“We have carefully considered the feedback to make sure the path forward strikes the right balance between enabling housing growth and managing risks,” said Penk.
Resource Reform in the Pipeline
Complementing the Building Act amendment is a forthcoming National Environmental Standard (NES) under the Resource Management Act (RMA), which is expected to be in force by the end of 2025. The NES will override local council rules, allowing granny flats in both rural and residential zones without needing resource consents.
“This NES will require all councils to permit a granny flat on sites in rural and residential zones without the need to gain a resource consent,” said Housing Minister Chris Bishop. “These processes are [currently] complicated, time-consuming, and costly.”
Bishop described the broader changes as a direct response to New Zealand’s pressing housing shortage. “It’s currently far too hard to build the homes New Zealanders need, with even the simplest dwellings tangling up homeowners and builders in red tape.”
Streamlined, Not Free
While the reforms simplify the path to building, they do not eliminate all regulatory obligations. Homeowners will still be subject to infrastructure charges, levied through the existing Project Information Memorandum (PIM) process. These charges are meant to support councils in funding local infrastructure for growing communities.
MBIE has estimated that nearly 13,000 additional granny flats could be built over the next decade under the new exemption.
Political Will and Social Shifts
The move is part of a broader effort by the coalition government to address housing demand through deregulation. NZ First Associate Finance Minister Shane Jones, who represents Northland, highlighted the social motivations behind the change.
“In the Far North I saw how extended family often live together at the same property,” Jones said. “Changing the rules to make it easier to build more family accommodation allows generational living at an affordable price.”
The new rules cater to a growing trend toward multi-generational households and the need for accessible housing for young adults, elderly family members, and rural workers.
Looking Ahead
The legislation is on track to be introduced in the coming months, with full implementation expected by the end of 2025. Until then, homeowners are advised to check with their local council before proceeding with any building plans.
As NZ continues to grapple with an ongoing housing crisis, the government’s targeted deregulation could mark the beginning of a broader shift in how New Zealand approaches residential development.
“Removing regulatory barriers and taking a commonsense approach to the consenting system is a critical part of increasing housing supply for Kiwis,” said Penk. We want to “get builders back on their tools, and out of the office by reducing their paperwork.”