by Nadia Herlambang

From early 2026, New Zealand home owners will be able to build qualifying granny flats (also known as minor dwellings or small standalone dwellings) up to 70m² without needing a building consent. This is one of the most significant changes to the Building Act in recent years and will create new opportunities for homeowners, investors, and families looking to maximise their land.

However—while the building consent requirement is being removed—your legal obligations are not. Title restrictions, Resource Management Act (RMA) requirements, natural hazard overlays, development contributions and tenancy laws all remain firmly in place.

This guide explains what you can and cannot do under the 2026 exemption, how the new rules interact with existing laws, and what you must consider before committing to a granny-flat build.

What the 2026 Building Consent Exemption Allows

The Building and Construction (Small Stand-alone Dwellings) Amendment Bill enables a new exemption for simple, single-storey dwellings with a floor area of 70m² or less.

To qualify under the exemption, your granny flat must meet the following conditions:

• The design must be simple, lightweight, and compliant with the Building Code.

• It must be designed and/or supervised by a Licensed Building Practitioner (LBP).

• It must be at least 2m from boundaries and nearby structures, with a maximum height of 4m.

• Plumbing, drainage, and electrical connections must be straightforward and tie into existing services where available.

• It must be a new, stand-alone, single-storey dwelling up to 70m².You must notify the council before construction begins and again once the build is completed.

Even without a building consent, the dwelling must still satisfy Building Code performance requirements for structure, fire safety, durability, moisture ingress and weathertightness.

Do You Still Need Resource Consent? (RMA Rules Still Apply)

Removing building consent does not remove resource consent obligations. The Government intends to introduce a National Environmental Standard (NES) requiring councils to permit one minor dwelling per property without resource consent, provided the site meets fundamental planning standards.

You may still require resource consent if your property is subject to:

• zoning restrictions
• height or recession-plane rules
• boundary setbacks
• site-coverage limits
• flood zones, coastal hazards or erosion overlays
• heritage or landscape protections

This is one of the most common areas where home owners misunderstand the exemption. The build may not need a building consent, but your land may still be restricted under the RMA.

NZ Legal can complete an RMA-planning compliance review to confirm eligibility.

Development Contributions Will Still Apply

Councils may still levy development contributions through the Project Information Memorandum (PIM) process. These charges fund local infrastructure such as water, wastewater, stormwater, transport networks, parks and community facilities.

A “consent-exempt” build does not mean a “fees-exempt” build. Budgeting for development contributions remains essential.

Title Restrictions Can Prevent a Granny Flat Even Under the New Rules

The 2026 exemption does not override existing legal interests on your Record of Title.

Common restrictions affecting granny-flatbuilds include:

• covenants prohibiting additional dwellings
• height, colour, or material controls
• easements limiting building placement
• consent notices restricting development

Two ownership structures require particular care:

Cross-Lease Properties

Adding a granny flat usually requires:

• full consent from all other lessees
• a new flats plan
• updated cross-lease documentation

Without these steps, the title becomes defective.

Unit Title Properties

Body corporate approval may be required for:

• structural additions
• service connections
• alterations affecting common property

These restrictions can override the newlegislative exemption entirely.

Can You Rent Out a Granny Flat Built Without Consent?

Yes, you can rent out a consent-exempt granny flat, provided it complies with the Residential Tenancies Act and the Healthy Homes Standards.

This means the dwelling must have:

• compliant heating
• insulation
• ventilation
• moisture ingress and drainage controls

Consent exemption does not reduce your obligations as a landlord.

Natural Hazards and Engineering: When the Exemption Does Not Apply

Some locations will be ineligible for the exemption, particularly if they fall within:

• flood zones
• coastal inundation areas
• erosion-prone or instability zones
• other natural-hazard overlays

In addition, many sites require:

• geotechnical assessment
• engineered foundations
• stormwater design review

These technical requirements continue to apply even without council inspections.

Timing Your Build: Transitional Rules for 2025–2026

If you start construction before early 2026, you must still apply for:

• a full building consent
• inspections
• producer statements
• full architectural plans

This applies even if your dwelling would have qualified under the new regime. Home owners planning a build should obtain advice to determine whether to proceed now or strategically delay until the exemption is in force.

Consumer Protection Rules Still Apply

The Building Act’s consumer-protection regime continues to apply regardless of consent status. This includes:

• the 12-month defect repair period
• 10-year implied warranties
• mandatory written building contracts for residential work over $30,000
• LBP disclosure and record-of-work obligations

These protections act as your safety net, even without council oversight.

Why the 2026 Granny Flat Exemption Is a Strategic Opportunity

The upcoming exemption provides a streamlined development pathway that can unlock:

• new rental income streams
• Airbnb and short-stay accommodation options
• multi-generational living
• increased land utilisation without subdivision
• faster and more affordable construction (especially for transportable homes)

Home owners and investors are already preparing to incorporate minor dwellings into their broader property strategy.

How NZ Legal Can Help

NZ Legal's property specialists can guide you through the full legal framework and confirm whether your property qualifies under the new exemption.

We can assist with:

• reviewing your Record of Title (covenants, easements, consent notices)
• assessing eligibility under the 2026 exemption and RMA rules
• advising on cross-lease and unit-title implications
• reviewing or preparing building contracts
• supporting PIM applications and council notifications
• advising on ownership structures and lending requirements
• ensuring tenancy and Healthy Homes compliance

If you are considering a granny-flat building 2026, early legal due diligence is essential to avoid costly mistakes.

Contact NZ Legal to assess whether your property is eligible under the new framework and to plan your build with confidence.

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FAQ Section

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‍Can I build a granny flat without a building consent in New Zealand?

Yes. From early 2026, you can build a new, stand-alone, single-storey granny flat up to 70m² without a building consent, provided it meets the new legislative criteria, is designed or supervised by a Licensed Building Practitioner, and complies with the Building Code.

What is the maximum size of a granny flat without consent in NZ?

The exemption applies to dwellings up to 70 square metres of net floor area. Anything above 70m² will still require a building consent.

Do I still need resource consent for a granny flat?

Possibly. Resource consent may still be required if your site breaches district plan standards such as setbacks, height limits, site coverage, or is located within a flood zone, natural hazard overlay, heritage area or protected landscape.

Does a granny flat built without consent still need to comply with the Building Code?

Yes. Every exempt granny flat must still fully comply with the Building Code, including structure, fire safety, durability, moisture management, insulation and sanitation requirements.

Can I rent out a granny flat that was built without a building consent?

Yes. Consent exemption does not affect tenancy law. If rented, the granny flat must comply with the Residential Tenancies Act and Healthy Homes Standards.

Can I build a granny flat on a cross-lease section?

Only with all other lessees’ consent and an updated flats plan. If you build without updating the flats plan, your title becomes defective.

Can covenants or easements stop me from building a granny flat?

Yes. Title restrictions such as covenants, easements, building schemes and consent notices can prohibit or limit minor dwellings, regardless of the law change.

Can I build a granny flat on a unit title property?

You may need body corporate approval, especially if the build affects common property, shared utilities or the unit footprint.

Does the 2026 exemption apply to transportable homes?

Yes, provided the dwelling meets all criteria around size, simplicity of design, Building Code compliance and LBP supervision.

Can I start building now and rely on the 2026 rules later?

No. If construction begins before the exemption takes effect, you must follow the current building-consent process even if your design meets the upcoming criteria.

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