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.
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
| Design limit | Proposed requirement |
|---|---|
| Size | Less than 70m2, single storey dwelling. |
| Separation & setbacks | At least 2 m from any other structure or property boundary. |
| Height & elevation | Maximum height 4 m and floor level no more than 1 m above ground. |
| Materials | Light timber/steel frame; roof < 20 kg/m² and wall cladding < 220 kg/m². |
| Plumbing & services | Simple plumbing and drainage; must connect to existing services when available or have on‑site systems; independent electrical or gas supply is required. |
| Building practice | Must be built or supervised by Licensed Building Practitioners; LBP must provide records of work. |
Read the Government official proposed conditions here
Yes. The exemption will apply to both rural and residential zones. However, overlays and district plans still apply (see below).
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.
No. You cannot apply this rule to past builds. It will only apply to new builds started after the law is passed.
They might. The exemption only removes the requirement for a building consent, but:
So always check your local council’s rules before committing.
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.
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
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.
Yes, in most areas. But you’ll still need to comply with Healthy Homes and Tenancy law.
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.
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.
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.
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.
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.