New granny flat policy will boost NZ housing, property investors' group says
Granny Flat Rule Changes Aim to Boost Housing Flexibility Across New Zealand
The government is moving ahead with changes to make it easier for Kiwis to build granny flats on their properties—part of a broader push to improve housing accessibility and affordability.
Originally proposed at 60 square metres, the updated plan will now allow for standalone granny flats up to 70 square metres to be constructed without requiring building or resource consents, provided they meet several key conditions. These include:
• A simple design that complies with the Building Code
• Construction by qualified professionals
• Notification to the local council before and after the build
The move comes after nearly 2,000 public submissions during the consultation period from June to August last year.
The policy will be supported by a new National Environmental Standard (NES) under the RMA, set to be in place by the end of the year. The NES will mandate that councils must permit granny flats in residential and rural zones without requiring a resource consent, aligning with changes to the Building Act also scheduled for later this year.
Housing Minister Chris Bishop says the reforms will help lower living costs by making it faster and more affordable to create additional housing on existing properties.
“These granny flats are a practical solution for extended families, people with disabilities, older parents, and rural workers,” he said.
Building and Construction Minister Chris Penk noted that eliminating unnecessary red tape is key to unlocking more housing supply.
“We’ve carefully balanced the need for growth with the need to manage risk,” he said.
The initiative also aligns with the coalition agreement between National and New Zealand First, focused on streamlining small-scale building projects.
Associate Finance Minister Shane Jones welcomed the move, particularly for regions like the Far North where multi-generational living is common.
“Allowing easier construction of family accommodation supports affordable, generational living for many whānau across the country,” he said.