Homeowners will be able to build standalone “granny flats” up to 70 square metres without a building consent from early 2026, after Parliament passed legislation the Government says will cut cost and complexity for small dwellings.

RMA Reform and Housing Minister Chris Bishop said the change is aimed at making it faster and more affordable to add small homes in backyards, with updated national direction under the Resource Management Act expected by the end of the year to remove the need for resource consents as well.

“These simple dwellings have the potential to be part of the solution for providing families with more housing options,” Bishop said.

Associate Finance Minister Shane Jones framed the change as a practical option for extended families and employers in smaller communities. “For whānau who live in extended family situations, this is an affordable option,” he said.

Building and Construction Minister Chris Penk said officials expect roughly 13,000 additional granny flats to be built over the next decade, and that councils would be freed from consenting “simple building work” to focus on more complex projects.

The exemption will not be automatic. To qualify, flats must be of “simple” design, meet the Building Code, and the work must be carried out by authorised building professionals. Homeowners will need to notify their council before building and again when the flat is completed. Most of the specific design requirements for what counts as a simple design are set out on the Government’s Building Performance website.

Councils will still be able to charge development contributions to support local infrastructure when they issue a Project Information Memorandum (PIM). The Government says guidance, forms and templates for councils, homeowners and the sector will be provided before the exemption takes effect.

The new rules begin in the first quarter of 2026. Any granny flat already underway or started before then will still require a building consent under the current system.

The changes are being delivered through the Building and Construction (Small Standalone Dwellings) Bill and associated regulations, with accompanying RMA national direction to follow by year’s end.