What New Granny Flat Rules Mean for Costs, Consents & Councils in New Zealand

In early 2026, significant changes came into effect in New Zealand that aim to make it easier for homeowners to build small granny flats — and potentially other minor dwellings such as tiny homes or sleepouts — on their property. These changes are part of a broader shift in national policy designed to reduce red tape and make additional housing options more accessible for families, renters, and homebuilders.

But while the new rules remove some traditional barriers, it’s important to understand what’s changed — and what hasn’t — especially if you’re considering adding a self-contained cabin, granny flat, or tiny home to your backyard.

No Consent Required — But Conditions Still Apply

Under the new framework, property owners no longer need a building consent or resource consent to construct a standalone granny flat in their backyard, as long as certain conditions are met. These buildings must:

• Be single-storey and 70 m² or less in size

• Be designed and built to meet the Building Code

• Be constructed or supervised by licensed building professionals

• Comply with national planning standards or the relevant district plan for minor dwellings (e.g., permitted activity rules)

• Be positioned at least 2 metres from other residential buildings and property boundaries 

These changes are part of updates to the Building Act and related national planning standards that took effect in early 2026, following legislative changes passed in Parliament.

This means that while major consent hurdles have been removed for many projects, compliance with the Building Code and professional standards is still non-negotiable.

Simply put: fewer upfront bureaucratic steps — but the construction must still be safe, compliant, and code-ready.

The Project Information Memorandum (PIM) Still Matters

Instead of formal building and resource consents, most property owners will still need to secure a Project Information Memorandum (PIM) from their local council before work begins.

A PIM helps identify early any risks or constraints related to the site — such as drainage, hazards, servicing, and whether the exemption will actually apply in your circumstance. Council planning and regulatory staff often recommend engaging with them early to avoid surprises that can cost time and money down the track.

This document doesn’t replace compliance — it just ensures everyone understands the responsibilities and requirements before the build begins.

Development Contributions & Other Costs

While consent costs have been simplified, property owners will still face other costs associated with adding a granny flat:

• Development contributions — these are council charges that help fund infrastructure upgrades (like roads, water, and sewerage) needed to support new dwellings. The amount varies by location and size of the new building.

• Construction costs — materials, labour, and professional fees for build quality and certification

• On-site services — plumbing, electrical, sewerage, and water connections

• Increased property rates — because a self-contained dwelling is considered a second unit, councils may charge higher rates to reflect the additional services being consumed.

These costs are not insignificant, but the government estimates that removing the requirement for traditional consent processes could save homeowners around $5,500 and up to 14 weeks in time compared with historic consent timelines — a meaningful saving for many DIY and kitset projects.

What This Means for DIY Cabin Builders

For people interested in flatpack kitset cabins, tiny homes, sleepouts, or granny flats, these rule changes are important to understand:

• You still need to meet the Building Code — safety, structural integrity, insulation, and services matter

• Professional involvement is required — builds must be carried out or supervised by licensed professionals

• Documentation still matters — final plans, Records of Work, and compliance certificates must be supplied to council once the build is done

• Consult early — talking with council planning staff before design and site works start can save frustration and unexpected expense

In other words, the pathway is simpler — but not unregulated. Smart planning, compliance with standards, and understanding council expectations remain essential.

A Boost for Affordable Backyard Living

The intent behind the new rules is to make it easier for Kiwis to create flexible housing solutions that support multigenerational living, rental income, accessible spaces for disabled family members, or simply extra usable area on an existing property. According to Hastings District Council Mayor Wendy Schollum, granny flats can make “a real difference to the community” when done right.

For DIYers and flatpack builders, this means more opportunities to add value to your section without some of the traditional hurdles — provided you still meet the necessary building and safety requirements.