What’s changed? There is now a Building Consent Exemption for Small Dwellings
From early 2026, the New Zealand Government has introduced a new exemption that allows certain small stand-alone dwellings to be built without a standard building consent — provided they meet specific criteria. This is part of the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025.
The change aims to streamline building small homes and support affordable housing options by reducing consent costs and delays.
Why These Changes Matter
Easier and cheaper builds
The new rules remove the need for a formal building consent for small stand-alone dwellings that meet the criteria, which can significantly reduce red tape and cost (potentially thousands of dollars per dwelling).
Boosting housing supply
By simplifying the process for building granny flats and similar units, this change is intended to support more flexible housing options – such as multigenerational living spaces, rental homes, or affordable homes.
Increase income from property
The new rules enable property owners to add value to their property more easily and potentially derive additional income from those improvements.
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What Is a ‘Small Stand-alone Dwelling’?
A small stand-alone dwelling under the new rules is a building that:
– Is stand-alone (not attached to another building).
– Is brand new, not an addition or alteration to an existing building.
– Has a net floor area of 70 m² or less.
– Is single-storey only.
This type of dwelling is commonly referred to as a granny flat or minor residential unit under the legislation.
Conditions to Be Exempt from Building Consent
Even though a building consent is no longer required for qualifying small dwellings, you must meet all of the following conditions:
1. Meets the New Zealand Building Code – safety, structure, durability, fire safety, moisture control, etc.
2. Work done by Licensed Trades or Professionals – all design and building work (including plumbing, electrical work, drainlaying) must be done by qualified or licensed practitioners authorised under relevant NZ laws.
3. Council Notification Required – you must notify the local council before construction starts via a Project Information Memorandum (PIM) and again after completion with records of work and final design plans.
4. Site Conditions – cannot build in areas with significant natural hazards without appropriate mitigation, and dwellings must not cross property boundaries.
Other Technical Requirements (Typical Examples)
Some of the specific technical criteria included under the exemption include:
– Maximum height: around 4 m above finished floor level.
– Drainage standards: minimum pipe sizes and grades must be met.
– No pumped plumbing systems: simple gravity-based systems only.
– Compliance with zone or district plan limits about setbacks and local rules (these are still enforced by
councils).