The Government has announced an expansion of its granny flat building consent exemption to support faster construction, more choice for homeowners, and a wider range of off-site building methods.
Building and Construction Minister, Chris Penk says two new changes will make it easier and faster to deliver granny flats, particularly through off-site construction.
“We’re making a practical change to allow consent-exempt granny flats to be built off-site before a Project Information Memorandum (PIM) is issued, provided all conditions are met,” Mr Penk said.
“That means homes can be built in advance, giving buyers the ability to inspect them before purchase and reducing overall construction time.”
A PIM will still be required before any on-site work begins, providing an opportunity to confirm the home is suitable for the land it will be placed on, the Minister said.
“Homeowners will continue to have flexibility in how they build. People can still choose to build entirely on-site using the exemption or go through the standard building consent process if that better suits their project.”
“We’re also expanding the exemption to include Structural Insulated Panels with a CodeMark certificate, recognising a wider range of proven building materials while maintaining confidence they meet Building Code requirements.
“Alongside this, we’re making minor technical improvements to ensure the rules are clear and workable in practice. All the changes are expected to be made by Order in Council in Q3 of 2026,” Mr Penk said.
Associate Finance Minister, Shane Jones says the changes are practical and will provide a range of options for families.
“For whanau that need housing immediately, allowing granny flats to be readily available is a commonsense decision,” he said.
“I am pleased the New Zealand First-National Coalition agreement is delivering more commonsense housing solutions.
“These changes allow homeowners to have a range of options available to them and I look forward to seeing a boost in productivity in the construction sector this will bring,” Mr Jones says.
Under the National Environmental Standards for Detached Minor Residential Units (NES-DRMU), under the Resource Management Act 1991, homeowners can add a detached minor residential unit of up to 70 square metres without needing a resource consent, provided certain requirements are met such as floor area, building coverage, and setback distances.
The NES-DMRU complements the building consent exemption under the Building Act 2004, which remove the need for a building consent for these units if they meet specified criteria.
Changes to PIM requirements for off-site construction will be included in the upcoming Building Amendment Bill, which is expected to be introduced in the middle of 2026.
