The New Zealand Government is proposing major changes to make it easier for Kiwis to build small standalone dwellings (often called granny flats, minor dwellings, or transportable homes) up to 70m². Here's a practical, plain-English breakdown of what the proposed 2026 rules could mean for you.

Disclaimer: The information on this page is based on proposed legislation and national policy changes as of August 2025. These changes have not yet come into force and may be subject to amendment.

Can I build a granny flat without building consent?

Under this current proposal, the exemption applies to new, detached, single-storey dwellings with a net floor area up to 70 m² (including any integrated garage). Core design criteria are as follows

Read the Government official proposed conditions here 

Does this apply to rural properties?

Yes. The exemption will apply to both rural and residential zones. However, overlays and district plans still apply (see below).

Can the granny flat be the only home on the section?

Maybe. Despite the term “granny flat,” the proposed 2026 exemption applies to any small standalone dwelling up to 70 m² — not just secondary units. The law doesn’t explicitly require a larger main home to be present on the property. That said, some planning professionals interpret the intent as supporting second dwellings rather than standalones. But based on the wording of the bill and Building Code classification, there's nothing that clearly prevents a compliant small home from being the only dwelling on a section. Until official guidance clarifies this point, the door appears to be open — at least from a building consent perspective.

Can I apply this exemption retrospectively?

No. You cannot apply this rule to past builds. It will only apply to new builds started after the law is passed.

Do overlays or covenants override the exemption?

They might. The exemption only removes the requirement for a building consent, but:

• Natural hazard overlays, flood zones, and reverse sensitivity zones (like near airports) may still require consent.
• Private land covenants and easements still apply and can restrict additional dwellings.
• District Plans may still control density, site coverage, or height.

So always check your local council’s rules before committing.

Will I need a geotechnical or engineering report?

Maybe. The exemption removes the need for building consent, but:

• Foundations still need to be designed by an LBP or engineer.

• If your site is on unusual soil, a geotech report might be needed to confirm appropriate design.

• Sites in natural hazard areas (like flood plains or erosion zones) may still require a geotech or engineering input.

Can I build in a flood zone?

You may not be eligible for the exemption. Natural hazard zones are one of the key disqualifiers for this proposal. If your land is in a flood zone or subject to known hazards, a full building consent may still be required.

Will it make building faster?

Yes. Removing the need for building consent could reduce timeframes by 6–12 weeks (or more), depending on your council.

But delays may still occur due to:

• Council review of district plan compliance

• Siteworks, engineering, or utility approvals

Will this reduce building costs?

In many cases, yes. Removing building consent can:

• Save $5,000–$15,000 in consent and consultant fees

• Avoid 2–4 months of paperwork

• Let you choose off-site prefabricated options with faster install

However, costs will still vary by site conditions, design, transport, and services.

Common Questions from Kiwi Landowners

Can I rent out a granny flat?

Yes, in most areas. But you’ll still need to comply with Healthy Homes and Tenancy law. 

Do I need resource consent?

Probably not — if your site meets the basic standards.

Under the proposed 2026 reforms, a new National Environmental Standard (NES) will make it mandatory for councils to permit one small standalone dwelling per property without resource consent — as long as:

• Your land is zoned residential, rural, mixed-use, or Māori-purpose

• You comply with rules for height, setbacks, and site coverage

• Your site is not affected by overlays like flooding, heritage, or landscape protections

However, resource consent may still be required if you breach these standards, try to build more than one minor dwelling, or your site is in a sensitive area.

The goal is to make building small homes faster and easier — but some edge cases will still need planning approval.

Does this apply to transportable homes?

Absolutely. Most transportable homes under 70m² will be eligible—provided they satisfy all design and compliance requirements. Transportable solutions are highly advantageous, offering accelerated build timelines and minimising on-site disruption.

Can I build on Māori land or as part of a papakāinga?

Yes. The National Policy Statement on Urban Development and proposed National Environmental Standard both support papakāinga development, and this exemption could make it even more accessible.

What if I already applied for consent?

If you’ve already applied and paid, you may not get a refund even if the law passes later. You may wish to wait before submitting – but talk to a planner or your council first.

Does Manor Build Supply Minor Dwellings?

Manor Build have many options to build your Minor Dwelling and meet all the above regulations. Watch this space for an entirely new range coming out specifically to meet these requirements and make it easy to purchase your dream Granny Flat. In the meantime if you want to start the design process please reach out.

An example below of a 70 m2 three bedroom, 2 bathroom design.

An Example of a 59m2 granny flat design, 2-bedroom and 2-bathroom.