The Latest on the 70sqm Granny Flat Rules

Law passed: Homeowners can build granny flats up to 70 sqm without consent from 2026.
Conditions apply: Simple design, built by professionals, compliant with the Building Code.
Council notification required: Before starting and after completion.
Resource consents for these granny flats to be removed: Updates to the RMA underway.
Nationwide impact: Estimated 13,000 new units in the next 10 years.

In a major step toward improving housing affordability and flexibility, the New Zealand Government has officially passed legislation allowing homeowners to build granny flats of up to 70 square metres without a building consent.

This long-discussed change, first proposed in late 2023, has now been signed into law and will come into effect in the first quarter of 2026. This update provides a clear look at what’s changing, who can benefit, and what’s next for builders and families across the country.

What’s New, and Now Official

Under the new regulations, Kiwi homeowners can build a standalone dwelling up to 70 sqm on their property without requiring building consent.

To qualify for the exemption:

The granny flat must be simple in design.
It must meet the New Zealand Building Code.
Construction must be carried out by professional builders.
Homeowners must notify their local council before work begins and again once it’s completed.

This legislative change removes one of the biggest barriers for smaller, secondary dwellings, which is the time and cost of the consenting process. It’s expected to open the door to thousands of new small homes, especially for families looking to accommodate relatives, adult children, or extended family.

Why the Change Was Introduced

The exemption was included as part of the National–New Zealand First coalition agreement and is designed to help address both the housing shortage and the rising cost of living. RMA Minister Chris Bishop said the reform would “make it easier and cheaper for families to provide more housing options.” He noted that granny flats could provide practical housing for grandparents, people with disabilities, young adults, and workers in the rural sector. To further streamline the process, the Government is also updating national direction under the Resource Management Act (RMA) to remove the need for resource consents for these dwellings. That update is expected by the end of 2025, ensuring the new law is ready for implementation in 2026.

What This Means for Homeowners

This is one of the most significant shifts in residential building in decades. For homeowners, the benefits are clear:

Faster builds – No need for lengthy building consent processes for compliant designs.
Lower costs – Reduced fees and fewer administrative delays.
Greater flexibility – Use a granny flat for family, rental income, or staff accommodation.
Increased property value – Adding a self-contained secondary dwelling can boost long-term resale potential.

What It Means for Builders and Councils

Building and Construction Minister Chris Penk says the change could result in around 13,000 new granny flats nationwide over the next decade. “We’ll see more work for builders in the pipeline without local councils managing unnecessary consenting burdens for simple building work,” Penk said. By removing routine approval processes for simple structures, local councils can focus on complex projects, freeing up resources for developments that truly require detailed review. The Government has also confirmed it’s developing new templates, forms, and guidance materials to help both homeowners and builders adapt to the new rules.

The Bigger Picture: A Step Toward Smarter Housing

Associate Finance Minister Shane Jones highlighted how the reform supports extended family living and small community accommodation, particularly for employers in regional New Zealand who provide staff housing. This aligns with a wider shift toward smarter, more flexible housing solutions. The 70 sqm exemption encourages Kiwis to make the most of their land while maintaining high building standards and safety.

Final Thoughts

The passing of the 70 sqm granny flat exemption marks an exciting moment for New Zealand housing. For many families, it means more freedom, affordability, and choice when it comes to multigenerational living or income opportunities.

If you’re considering adding a secondary dwelling, now’s the time to start planning, so your project is ready to go when the new law takes effect in 2026!