Small Stand-Alone Dwelling Without Consent? What You Need to Know About the new “Granny Flat” Legislation

New Zealand’s housing landscape is about to shift. A new bill, Building and Construction (Small Stand-alone Dwellings) Amendment Bill, is set to make it easier for homeowners to build small dwellings without needing a building consent. If passed, this legislation could take effect in early 2026, and it’s already generating interest among property owners, developers, and councils alike.

At its core, this reform is about removing red tape and unlocking housing potential, especially for families looking to support elderly relatives, young adults, or those needing affordable living options.

What’s Changing?

Under the proposed law, homeowners will be able to build stand-alone dwellings up to 70m² without a building consent, provided certain conditions are met:

• The design must comply with the Building Code.
• Construction must be carried out or supervised by licensed professionals.
• Councils must be notified before and after the build (as explained further below).

These dwellings, often referred to as granny flats, must be single-storey, detached, and self-contained. Lightweight materials and simplified plumbing are encouraged to keep builds straightforward and cost-effective.

Resource Consent? Not Required

A new National Environmental Standard for Granny Flats (NES-GF) will make granny flats a permitted activity in most zones, including residential, rural, mixed-use, and Māori purpose zones. Councils won’t be able to impose rules around outdoor space, privacy, or parking, removing a major barrier for many homeowners.

What Does This Mean for You?

If you’re a homeowner, this could mean:

• Faster builds with fewer delays.
• Lower costs, no building consent fees.
• More flexibility to support family or generate rental income.

However, a Project Information Memorandum (PIM) is still required. While the building consent process is being removed for eligible granny flats, councils will continue to issue PIMs to:

• Identify site-specific risks such as natural hazards, heritage status, or infrastructure limitations.
• Notify homeowners of requirements under other legislation, such as the Fire and Emergency New Zealand Act or the Resource Management Act.
• Attach development contribution notices, which help fund infrastructure upgrades like water, wastewater, stormwater, and transport systems.

The PIM must be applied for before construction begins and is typically issued within 20 working days of application. It is a crucial step to ensure your build is legally compliant and that you’re aware of any local constraints or obligations.

Considering a granny flat? Let’s ensure your project is legally sound from the start
This reform is a bold step toward unlocking backyard housing across New Zealand. It has been viewed as practical, people-focused, and designed to meet the needs of modern families. But like any legal change, it comes with responsibilities and opportunities.

If you are considering a small stand-alone dwelling, or advising someone who is, now’s the time to get informed. The law may be changing, but good advice remains essential.

Our team is available to assist with key aspects of the process, including:

• Infrastructure contributions via the PIM process.
• Notification obligations to councils.
• Compliance with district plans.
• Risks and considerations,

If you would like tailored advice or support navigating the proposed new legislation, please do not hesitate to get in touch.

This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.