New rules are now officially in effect making it easier for homeowners to build small, self-contained dwellings on their properties.
As of 15 January 2026, eligible granny flats can be built without a building consent or resource consent. The introduction of the Building and Construction (Small Standalone Dwellings) Act is part of the Government’s wider plan to boost housing supply, reduce costs, and make better use of existing residential land.
Homeowners can now build a granny flat of up to 70 square metres without applying for a building consent if all exemption criteria are met. Resource consent requirements for these dwellings have also been removed.
The intent is to simplify the process, reduce red tape, and make it faster and more affordable to add small homes on existing sites. The aim is to help ease housing pressure and improve flexibility for families.
However, as Housing Minister Chris Bishop has noted, it’s not a “free for all” there are still conditions such as site coverage and boundary setbacks that must be carefully considered.
To qualify for the exemption, granny flats must be:
They must also:
Even though a building consent isn’t required, councils may apply development contributions.
Homeowners are still responsible for ensuring:
Designers and builders must ensure the project remains within the exemption criteria. If it does not, a full building consent may still be required.
For Lockwood clients, the new exemption creates more opportunities to add a secondary dwelling, whether for extended family, rental income, or future flexibility.
As with any successful project, the key is good design, early planning, and working with experienced professionals. Our team can help you decide if the granny flat exemption is the right fit for your project. We will manage the process and compliance. You can work directly with our designers, or we can collaborate with your own LBP designer through the process.
Lockwood homes are designed to meet Building Code requirements under CodeMark. We can also guide you through early feasibility checks, design considerations, and the council notification process, so there are no surprises later.
Our Sixty and Seventy Series Concepts are all designed to fit within the new rules, check them out here:
The Ministry of Business, Innovation and Employment has published comprehensive guidance for homeowners, designers and builders, including checklists and technical information.
👉 Granny flats exemption guidance and resources