Passed in October 2025, the Building and Construction (Small Stand-alone Dwellings) Amendment Bill – widely dubbed the “Granny Flats Bill” – is set to reshape how Kiwis add extra living spaces to their properties.
Whether you’re planning to house aging parents, accommodate adult children, or unlock a passive income stream, this law opens up significant opportunities. But opportunity also brings risk. Here’s what you need to know to take full advantage without making costly mistakes.
Quick Overview: What the Granny Flats Bill Allows
- Build Without Consent: Small, self-contained units up to 70 square metres can now be constructed without a building consent (effective early 2026).
- Still Must Notify: Councils must be notified at start and completion, even without a formal consent.
What You Can Build: The New Rules Explained
This legislation aims to simplify the process of adding stand-alone dwellings, but it’s not a free-for-all. Here are the key requirements:
- Size Limit: Max 70sqm floor area.
- Detached Only: Must be a stand-alone structure (not attached to main house).
- Self-Contained: Includes kitchen, bathroom, sleeping/living space.
- Must Meet Building Code: No consent doesn’t mean no standards. The unit must still comply fully with the NZ Building Code.
Effective Date: The law takes effect early 2026. Planning can begin now, but building must wait until the law is in force.
Risks & Limitations You Shouldn’t Ignore
While streamlined, this new path has traps for the unprepared:
- No Inspections = More Responsibility: Without consent, you’re forgoing council oversight. That means you must ensure the structure is safe, compliant, and well-built.
- Substandard Builds: Inexperienced or unqualified builders may cut corners, resulting in leaky, unsafe, or non-compliant homes.
- Insurance & Lending Issues: Some insurers and lenders may hesitate if there’s no formal consent. Confirm with your provider upfront.
- Other requirement: The building must be 2 metres or more away from any other residential building or legal boundary.. Check your local council’s District Plan before starting.
How to Protect Yourself: Smart Steps for a Smooth Project
- Engage Qualified Experts: Work with licensed builders, architects, and engineers. They know the Building Code and how to meet it.
- Get a Site-Specific Plan: Don’t assume you’re exempt—your site may still need resource consent.
- Keep Detailed Records: Hold onto all documentation, drawings, and compliance certificates (electrical, plumbing, etc.).
- Notify Council Properly: You must notify your council before and after construction, even without consent.
- Talk to Your Bank & Insurer: Make sure your lender and insurer are comfortable with a consent-exempt build.
“Skipping consent doesn’t mean skipping quality. Partner with pros who treat your granny flat like a full-scale home.”
FAQ: What Homeowners Are Asking
Q: What is the max size allowed?
A: 70 square metres for a stand-alone, self-contained unit.
Q: Can I just build it anywhere on my section?
A: No. You must comply with boundary setbacks, site coverage, and infrastructure requirements.
Q: What about inspections?
A: The council won’t inspect during construction, but the build must still meet code. Licensed trades must issue compliance certs.
Q: When can I start building?
A: Early 2026, once the law officially comes into force.
Final Thought: This Is a Huge Opportunity—If Done Right
The Granny Flats Bill gives you the power to add meaningful space and value to your property without traditional red tape. But it shifts responsibility from council to you. That means your design, build, and planning team matters more than ever.
Don’t risk a costly mistake. We can help you:
- Check resource consent requirements
- Design a code-compliant granny flat
- Estimate realistic build costs
- Build with confidence and documentation
Demand will spike as the rollout nears
Contact our team today to discuss your design, check council rules, estimate project costs, and secure your spot in the building queue.
