Big news for small homes: Granny Flat consent changes in NZ

24 Feb 2025
Design Options
Granny Flats
Housing market trends

Changes are underway in New Zealand’s housing sector, and they’re especially good news for anyone considering a compact, comfortable home. The Government has recently announced plans to increase the maximum size of granny flats that can be built without consent from 60m² to 70m² - cutting red tape and opening up more possibilities for Kiwis across the country.

Image of house showing granny flat sized
Knowledge Base
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Big news for small homes: Granny Flat consent changes in NZ

For us at Manor, this shift aligns perfectly with the needs of our clients. As specialists in high-quality transportable homes, we know how frustrating and time-consuming building consents can be. This change could reduce overall project timelines by up to half, making it faster and easier for you to get into a home that’s affordable, efficient, and just the right size.

What’s changing?

Under current rules, homeowners must seek building and often resource consent to add a standalone dwelling to their property. Even small projects, such as a two-bedroom granny flat, have been tied up in months of paperwork and council approvals.

The Government’s new plan, led by Housing Minister Chris Bishop, aims to fix that. By expanding the size exemption to 70m², more homes will qualify for streamlined builds - no building or resource consent required, provided the design meets key safety and performance standards, and the build is completed by authorised professionals. See more on the govt official site here.

What does this mean for you?

In practical terms, these changes could significantly reduce the time, stress, and cost involved in building a granny flat. Without needing building consent, you could go from decision to move-in in half the time.

This is especially important for:

  • Families adding space for elderly parents or adult children
  • Investors looking for short-term rental options
  • Rural homeowners expanding their property use
  • Anyone seeking a lower-maintenance lifestyle without sacrificing comfort

Best of all, the expanded size limit makes it possible to build genuinely livable two-bedroom homes - not just studios or one-bedroom spaces.

Great homes under 70m²

Here at Manor Build, we already have two beautiful, fully-featured homes that fall under the new 70m² threshold. Both Villa and Alabama homes are fully compliant with the Building Code and designed for ease of transport and fast installation. With the upcoming changes, you’ll likely be able to place either of these designs on your property without going through the usual building consent process - saving you thousands in fees and weeks (or months) in time.

The Villa – Just under 60m²

A classic two-bedroom, one-bathroom cottage, the Villa oozes traditional charm. With a layout that prioritises comfort and practicality, it’s ideal for those wanting a cosy retreat, whether for family, friends, or short-term guests. Its compact footprint makes it perfect for a backyard build, rural extension, or Airbnb-style rental.

Exterior_Render_ 16_9_Complete_658528

The Alabama – 60m²

If you love clean lines and modern living, the Alabama is your match. This design features a bright, open living space that flows effortlessly onto a sheltered deck - ideal for entertaining or relaxing with a book and a cuppa. The two double bedrooms, each with built-in wardrobes, and the functional walk-through laundry make the Alabama as liveable as it is stylish.

Alabama Mono - Vertical clad 1

Still safe and secure

Understandably, some have raised concerns about quality and safety with looser rules. But rest assured, the new framework still includes important checks. Homes must meet the New Zealand Building Code, and construction must be completed by qualified professionals. Councils will still be notified of builds and can apply infrastructure charges through the Project Information Memorandum (PIM) process.

The goal here isn’t to cut corners - it’s to cut the bureaucracy, making it easier for everyday New Zealanders to get the homes they need, without compromising on quality.

Why now?

The rising cost of living, demand for multi-generational housing, and lack of affordable rentals have all pushed the Government to act. Simplifying the process for granny flats helps address multiple challenges:

1. Improving housing supply.
2. Allowing families to stay close together.
3. Creating income-generating options.
4. Promoting more flexible living arrangements.

As a manufacturer of prefab homes, we believe this is a smart, people-focused step toward solving New Zealand’s housing puzzle.

Ready to build?

With these changes on the horizon, now’s the time to plan your dream granny flat. Whether you want a charming countryside retreat or a sleek, modern space to call home, we’ve got options ready to go - and soon, you won’t need to wait for consent to get started.

Explore our Villa and Alabama designs, or get in touch to discuss a bespoke solution under 70m². The future of small home living is here - and it’s looking spacious, stress-free, and stylish.

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