Industry

Updated granny flat rules increase choice

28 April 2026

2 minutes to read

Building on granny flat consent exemptions brought in this January, further changes have been introduced to give homeowners even more choice.

The Coalition Government is expanding its granny flat building consent exemption to support faster construction, more choice for homeowners, and a wider range of off-site building methods.  

“Our granny flat changes are real-life examples of the Government’s drive to cut red tape, reduce costs, and give families more options to make better use of their land,” RMA and Housing Minister Chris Bishop Bishop says.  

“We’ve already made it much easier for Kiwis to build a simple granny flat by removing the need for both building and resource consents in most cases for units up to 70 square metres, provided they meet clear national standards.  

“The new rules went live in January this year, and early data suggests strong interest from homeowners, builders, and councils with more than 52,000 downloads of the policy guidance document and supporting resources from the MBIE website.   

“Now we’re building on those changes to give homeowners even more choice, while maintaining strong safety and quality standards,” Bishop says.   

Building and Construction Minister Chris Penk says two new changes will make it easier and faster to deliver granny flats, particularly through off-site construction. 

“We’re making a practical change to allow consent-exempt granny flats to be built off-site before a Project Information Memorandum (PIM) is issued, provided all conditions are met. That means homes can be built in advance, giving buyers the ability to inspect them before purchase and reducing overall construction time."

 

“A PIM will still be required before any on-site work begins, providing an opportunity to confirm the home is suitable for the land it will be placed on.  

“Homeowners will continue to have flexibility in how they build. People can still choose to build entirely on-site using the exemption or go through the standard building consent process if that better suits their project.  

“We’re also expanding the exemption to include Structural Insulated Panels with a CodeMark certificate, recognising a wider range of proven building materials while maintaining confidence they meet Building Code requirements.  

“Alongside this, we’re making minor technical improvements to ensure the rules are clear and workable in practice. All the changes are expected to be made by Order in Council in Q3 of 2026,” Penk says.  

Associate Finance Minister Shane Jones says the changes are practical and will provide a range of options for families.  

“For whanau that need housing immediately, allowing granny flats to be readily available is a commonsense decision.  

“I am pleased the New Zealand First-National Coalition agreement is delivering more commonsense housing solutions.  

“These changes allow homeowners to have a range of options available to them and I look forward to seeing a boost in productivity in the construction sector this will bring,” Jones says. 

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