The Government has announced it will be expanding its consent-free granny flat rules.
The new regulations for granny flats came into force in January and allowed for units up to 70 square metres that met clear national standards to be built without consent.
Today, RMA and Housing Minister Chris Bishop, Building and Construction Minister Chris Penk and Associate Finance Minister Shane Jones announced an expansion to the scheme.
The first of the changes, expected to be made in Q3 of this year, would allow for consent-exempt granny flats to be built off-site before a Project Information Memorandum (PIM) is issued, provided all conditions are met.
“That means homes can be built in advance, giving buyers the ability to inspect them before purchase and reducing overall construction time," Penk said.
A PIM would still be required before any on-site work begins, so the home can be checked to ensure it is suitable for the land on which it will be placed.
“Homeowners will continue to have flexibility in how they build. People can still choose to build entirely on-site using the exemption or go through the standard building consent process if that better suits their project," Penk said.
Meanwhile, the exemption would be expanded to include Structural Insulated Panels (SIPs) with a CodeMark certificate as a building material.
SIPs are pre-fabricated building panels that consist of rigid foam between two structural boards.
Penk said that including the material recognised a "wider range of proven building materials while maintaining confidence they meet Building Code requirements".
The Government also said it would include "minor technical improvements" to ensure the rules were practical.
The changes were expected to be made by Order in Council in Q3 of 2026.
Bishop said the expansion was "building on" January's changes to "give homeowners even more choice, while maintaining strong safety and quality standards".
Jones said that for those who needed housing immediately, a granny flat was a "commonsense decision".
“These changes allow homeowners to have a range of options available to them and I look forward to seeing a boost in productivity in the construction sector this will bring.”
The new regime
Under the new rules that came into force at the start of the year, granny flats must have a simple design and meet the Building Code.
Work must also be carried out or supervised by licensed building professionals.
There were also other conditions to a consent exemption.
Bishop said in mid-January: "If you read the details carefully, there's a variety of rules in there. Site-to-boundary coverage around the area that you can use of the site, for example.
"It's not a complete free-for-all. You can't just go and build something out the back. You've got to follow the Building Code. You've got to follow the standards set out."
The same restrictions that apply to ordinary dwellings will apply to granny flats, meaning they cannot be built in flood zones where houses currently cannot be built.
Penk said another requirement was that councils must be informed when a granny flat will be built.
"It's not an opportunity for them to say no, so it's not a consent per se, but it's an awareness on the part of the council of what is being built," he said.
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