Granny Flat Consent Exemption NZ: The 70m² Rule Now in Force (2026 Update)
The NZ granny flat consent exemption is now in force. From 15 January 2026, the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025 lets you build a standalone dwelling up to 70m² without a building consent — provided the design meets the conditions in Schedule 1A of the Building Act, the work is carried out or supervised by a Licensed Building Practitioner (LBP), and you’ve notified your council via a Project Information Memorandum (PIM) before you start.
The exemption in one paragraph
A new, single-storey, freestanding dwelling up to 70m² built with lightweight framing and roof, set back at least 2m from boundaries and other buildings, can now be built without a building consent. The Building Code still has to be met in full. An LBP must do or supervise the work. Council still has to issue a PIM before you start and receive notification when you finish. Restricted Building Work (RBW) rules still apply. Resource consent is separately exempt for one minor residential unit per site under the new National Environmental Standards — but boundary setbacks and zoning still matter.
What you can build under the exemption
To qualify under Schedule 1A of the Building Act 2004, the dwelling must tick every one of these boxes:
- Floor area: 70m² maximum (including any internal garage)
- Single storey: no two-level granny flats, no mezzanines that count as a second storey
- Standalone: not attached to the main house — must be a separate building
- Height: 4m maximum from floor level to highest point
- Setback: 2m minimum from any boundary and from any other building on the site
- Framing & roof: lightweight steel or timber frame; lightweight roof cladding (no concrete tiles or heavy masonry)
- Bathroom: no level-entry shower requiring a waterproof membrane — the design must use a tray or threshold (this is the part most clients miss)
- Plumbing & drainage: simple system, connected to public stormwater and wastewater, or a compliant on-site system
- Site: not on land subject to natural hazards unless protective measures are in place
- Building Code: full compliance, no waivers or modifications
Miss any of these and the exemption doesn’t apply — you’re back into the full building consent regime.
The PIM process: what you still have to file with council
“No consent” doesn’t mean “no paperwork”. The exemption replaces the building consent process with a streamlined notification process. Auckland Council’s flow looks like this:
- Confirm eligibility: Run through the Schedule 1A checklist with your designer or builder. Get site plans, floor plans, elevations, framing details, and bracing calculations prepared by an LBP designer.
- Apply for a PIM: Submit Form 2AA (Application for Project Information Memorandum for non-consented small standalone dwelling) to Auckland Council. This must be done before any work starts on site.
- Council issues the PIM: Within 20 working days, Auckland Council confirms via Form 2AAB whether your proposal appears to meet the exemption, flags any natural hazards on the land, and attaches a development contribution notice (Form 3A) if applicable.
- Build with LBP supervision: An LBP must carry out or supervise all the structural and weathertight work (Restricted Building Work). Plumbing and drainage must be done by a registered plumber/drainlayer. Electrical work must be done by a registered electrician.
- Notify completion: Submit the Records of Work (Form 6A from the LBP, Form 2A for design, plus plumbing/drainlaying records) to council within 20 working days of completion.
- Pay any development contributions: If the council attached a notice with the PIM, this gets settled at the end.
You’ve got two years from the date the PIM is issued to complete the work. Miss that window and the PIM lapses — you’ll need to reapply.
What the exemption saves you (and what it doesn’t)
Direct savings
MBIE estimated that building consent for a 70m² granny flat used to cost an average of $4,431 per dwelling in fees alone. Beyond that, the wider time and cost savings come from:
- No 20-day statutory processing wait (often stretched to 6–10 weeks with RFIs)
- No build-stop while waiting for council inspections
- No CCC application or processing time at the end
- Less drawing detail required than a full consent application (though good drawings are still essential for the LBP build)
What you still pay for
- The PIM application fee (varies by council; typically a few hundred dollars in Auckland)
- Development contributions (if your site triggers them — these can be tens of thousands for new dwelling units)
- LBP design and build fees (no change — you still need a designer and a builder)
- Connections to Watercare for water and wastewater (if not already serviced)
- Resource consent if your site doesn’t meet the new National Environmental Standards setback rules
Resource consent: separate exemption, separate rules
The Building Act exemption and the new Resource Management Act exemption are two different things. From late 2025, a new National Environmental Standard (NES) for Detached Minor Residential Units removed resource consent requirements for one granny flat per residential or rural-zoned site — but only if the site meets the permitted activity standards.
The standards that matter most for Auckland sites:
- Zoning: Permitted in residential and rural zones; not exempt in future urban zones
- Rural setbacks: 10m from front boundary, 5m from side and rear boundaries (larger than the Building Act’s 2m)
- One per site: Only one minor residential unit per parent dwelling can use the exemption
- Ancillary to main dwelling: Cannot be built on a site without an existing primary dwelling
The trap: a design that’s exempt from building consent can still need resource consent if the site coverage, height-to-boundary, or stormwater rules in the Auckland Unitary Plan still apply. Check both regimes before signing a contract.
Risks & limitations you shouldn’t ignore
The exemption shifts risk and oversight from council to you. The biggest pitfalls we’re already seeing in early 2026:
- No mid-build council inspections. If your LBP cuts a corner on framing, bracing, or weathertightness, there’s no inspector catching it before lining goes on. Choose your builder carefully.
- Insurance & lending friction. Some insurers and lenders are still working out how to treat consent-exempt dwellings. Confirm policy wording and lending criteria with your providers before you start.
- Resale documentation. Future buyers’ solicitors will look for evidence the work qualified for the exemption — Form 2AA, Form 6A, Form 2A, plumbing and electrical certs. Keep every piece of paperwork.
- Drift past 70m². Internal garages count toward the 70m² cap. Decks and verandahs generally don’t, but check the design carefully — a tape-measure miss disqualifies the whole build.
- Bathroom design. If a client wants a designer-look level-entry walk-in shower, the exemption is off the table. Use a tray-based shower or budget for a full consent.
- Site-coverage rules. The unit might fit under the Building Act, but breach the Auckland Unitary Plan’s site coverage or impervious surface ratios — pushing you into resource consent anyway.
“Skipping consent doesn’t mean skipping quality. The exemption only works if the design and build team treat it like a full-scale home — because that’s exactly what it is.”
— Simon Liu, Founder, Add Value Renovations
Smart steps for a clean, exempt build
- Engage an LBP designer early. They’ll size the design to the Schedule 1A box and flag anything that risks disqualification. AVR’s design-and-build team handles this as one contract.
- Check both consent regimes. Building Act and RMA. Don’t assume one exemption covers the other.
- Apply for a PIM before signing trade contracts. The PIM confirms eligibility and flags any natural hazard or development contribution issues. Don’t pay deposits until it’s in hand.
- Keep every record. All LBP forms, all trade compliance certificates, all photos of the build. Future buyers’ solicitors will ask for this lot.
- Talk to your bank and insurer. Confirm in writing that a consent-exempt dwelling fits their requirements.
- Submit completion documents within 20 working days. This closes the loop with council and is your evidence of exemption compliance.
Granny flat exemption FAQs
When did the NZ granny flat consent exemption come into force?
The exemption took effect on 15 January 2026, when the remaining provisions of the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025 commenced. Before that date, all granny flats still needed a full building consent.
What’s the maximum size for a consent-exempt granny flat?
70 square metres of floor area, measured to include any internal garage. Decks and verandahs generally sit outside the 70m² calculation, but check the design carefully — a tape-measure miss disqualifies the whole build.
Do I still need to notify Auckland Council?
Yes. You apply for a Project Information Memorandum (PIM) using Form 2AA before any work starts. Council reviews the design and issues the PIM within 20 working days. At completion, you submit Records of Work from your LBP, designer, plumber, and electrician within 20 working days.
Can I build my own granny flat under the exemption?
No DIY exemption is part of this law. A Licensed Building Practitioner must carry out or supervise the work — including the framing, weathertightness, and structural elements (Restricted Building Work). Plumbing, drainlaying, and electrical work must be done by registered tradespeople.
Does the exemption cover a level-entry walk-in shower?
No. Schedule 1A explicitly excludes any shower that requires a waterproof membrane (i.e. a tiled level-entry shower). The design must use a moulded tray or threshold-based shower. If you want a tiled walk-in design, you’ll need a full building consent.
What setbacks apply?
Under the Building Act exemption: minimum 2m from any boundary and from any other building on the site. Under the new Resource Management NES: 2m from boundaries in residential zones, but 10m from the front boundary and 5m from side/rear boundaries in rural zones. The stricter of the two applies to your site.
How much does the exemption actually save?
MBIE’s published estimate is around $4,431 in consent fees for an average 70m² granny flat. The bigger savings often come from the months of processing and inspection time removed from the schedule, which translates to earlier rental income or earlier occupation by family.
Will I still need resource consent?
Often no — the new National Environmental Standard for Detached Minor Residential Units removed resource consent for one granny flat per site in residential and rural zones, provided permitted activity standards are met. But site coverage, impervious surface, height-to-boundary, and zoning rules in the Auckland Unitary Plan can still trigger resource consent. Check both regimes early.
Can I add a granny flat to a future urban zone property?
The NES resource consent exemption does not apply in future urban zones — so resource consent will likely be needed even if the building consent is exempt. Auckland has substantial future urban zone areas in the north and south, so this is a common catch.
What happens if my build doesn’t meet the exemption criteria?
If council determines (in the PIM stage or at completion review) that the design or build falls outside Schedule 1A, you’ll need to apply for a full building consent or, if work has already happened, a Certificate of Acceptance. Both are slower and more expensive than getting it right at the design stage.
Does AVR build granny flats under the new exemption?
Yes. AVR is LBP-certified for both design and build, so we can deliver the entire granny flat as a design-and-build package under the exemption — from initial feasibility and PIM application through to handover with all completion documentation. We also handle the resource consent check upfront.
The opportunity in 2026
The granny flat exemption gives you a faster, cheaper path to add real space and value to your property — for ageing parents, adult children, or rental income. But it shifts responsibility from council inspectors to your design and build team. Get the team right, get the PIM in early, and the law works exactly as intended.
The 50-point checklist every Auckland family should run before they sign
50 things to confirm before, during and after your renovation — covering scope, contracts, consents, site protection, payments, snag lists and handover. The exact pre-flight check we use on every AVR project.
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