Your Guide to New Zealand's Granny Flat Legislation: What's Changed and What It Means for You

Great news for Kiwi homeowners! The Government has just passed significant changes to building regulations that make it easier to add a secondary dwelling to your property. If you've been thinking about building a small home for family members or need flexible housing solutions, now's the time to understand what's possible.

What's the New Law All About?

On 24 October 2025, Parliament passed the Building and Construction (Small Stand-alone Dwellings) Amendment Bill. This opens the door for eligible properties to build granny flats (also called minor dwellings) without needing full building or resource consent—a major shift in residential building rules.

The new law comes into effect in early 2026, and it's designed to help Kiwis create multi-generational living arrangements on their existing land more easily and affordably.

Understanding Granny Flats: The Basics

A granny flat is a small, independent home built on the same property as your main residence. It's designed for family members—whether that's aging parents, adult children, or other relatives—who want to live nearby while maintaining their own space and privacy.

These secondary dwellings share the same land title and ownership as your main house. That means you can't sell them separately or treat them as independent properties with their own rates and ownership structures. They're part of your residential lot.

The goal of this new legislation is straightforward: give homeowners the flexibility to build secondary homes without unnecessary bureaucracy, while ensuring everything meets New Zealand's safety and building standards.

What You're Allowed to Build Now

If you're thinking about building a granny flat, here are the key requirements that qualify you for the streamlined process:

Size and structure:

• Maximum floor area of 70 square metres

• Single-storey only

• Permanently fixed to compliant foundations (timber piles, concrete pads, or screw piles)

Materials and construction:

• Lightweight materials like timber, steel framing etc

• Rigid plumbing systems (no macerator pumps or internal holding tanks)

• All plumbing, gas, and electrical work completed by licensed professionals

• Work signed off by a Licensed Building Practitioner (LBP)

Council requirements:

• You'll still need to apply for a Project Information Memorandum (PIM) with your council before building

• Your property must meet zoning, setback, and boundary requirements

If your project doesn't meet these criteria, you'll need to go through the traditional full building consent process. The good news is that even simplified builds still need to comply with the New Zealand Building Code—this ensures your home is safe, high-quality, and built to last.

What Doesn't Qualify (And Why)

While the new rules open up many possibilities, there are some important exclusions. Understanding these will help you avoid costly mistakes:

Tiny homes on wheels and caravans don't qualify. Here's the legal reality: if a structure sits on a trailer or chassis, it's classified as a vehicle under the Building Act 2004, not a building. Vehicles fall completely outside the Building Code framework and can't be issued with a Code Compliance Certificate (CCC)—the official proof that a home is legal, insurable, and mortgage-worthy.

Container homes and imported expandable houses often lack the engineering documentation and quality assurance needed to meet New Zealand's Building Code. Unless they can prove full compliance and provide complete certification, they won't qualify under this exemption.

Complex designs and two-storey homes fall outside the scope. The exemption applies only to simple, single-storey dwellings that meet strict design parameters.

Uncertified DIY kits and foldable houses also don't qualify unless they've been properly engineered, meet the NZ Building Code, and are signed off by a Licensed Building Practitioner.

The bottom line: if it's on wheels, in a shipping container, or doesn't have proper engineering certification from licensed professionals, it won't qualify under the new exemption.

The Steps You'll Still Need to Take

While the process is now more straightforward, there are still important steps to follow:

1. Check your property – Confirm your zoning allows a secondary dwelling and that you meet setback and boundary requirements

2. Apply for a PIM – Submit a Project Information Memorandum to your council before you start building

3. Build to code – Work with qualified professionals and licensed tradespeople on all aspects

4. Submit documentation – Once complete, provide your plans, records of work, and compliance certificates to council

Even with the streamlined consent process, your new home must still meet the New Zealand Building Code. This requirement exists to protect you—it ensures your investment is safe, meets current standards, and will hold its value long-term.

Why This Matters for Your Home Investment

A Code Compliance Certificate (CCC) is worth its weight in gold. It's the official proof that your home is:

• Legally compliant

• Insurable

• Mortgage-worthy

• Built to last

This certification separates a genuine, code-compliant home from something that merely looks like one. If you're planning to build, insure, or finance your granny flat, a CCC is essential.

Looking Ahead

The new granny flat legislation represents a significant opportunity for Kiwi homeowners. You'll soon be able to build a high-quality, fully-compliant secondary dwelling up to 70m² without the traditional consent burden.

Whether you're planning to house aging parents, provide space for adult children, or create rental income, this change makes it more accessible and affordable. Just remember: meeting the Building Code isn't a bureaucratic hurdle—it's your guarantee of quality, safety, and long-term value.

We're Already Building to These Standards

Freedom Chains specialises in quality timber frame construction using traditional New Zealand building methods. Our builds are already meeting the standards that the new granny flat legislation requires—so we're well positioned to support your project when the law takes effect in 2026.

If you're interested in exploring how a granny flat might work for your property, it's worth getting the planning started now. The more prepared you are, the smoother the process will be once the new rules come into effect.

Planning Ahead Makes Sense

While official work can't commence until 2026, there are real benefits to getting organized early:

Understand your options – Take time to explore whether a granny flat suits your property and your family's needs. Understanding the requirements now means fewer surprises later.

Secure your timeline – If you know you want to build, booking a spot in our schedule early helps ensure you're not caught in the rush when demand peaks. Many builders will be inundated once the law takes effect, so getting on a timeline early is sensible.

Lock in current pricing – Projects booked now can secure 2025 pricing. As demand increases in 2026, costs often follow, so early booking offers peace of mind on budget.

Plan your finances – With a clearer picture of timeline and costs, you can budget effectively. Done right, you could potentially be operational by March 2026—and the streamlined process could save around $30,000 compared to traditional full-consent builds.

Why Choose Freedom Cabins?

Our timber frame, traditional NZ building methods mean your granny flat will be built with genuine quality and craftsmanship. We understand the new regulations inside out, and we're ready to help you navigate the process smoothly.

Interested in learning more? Get in touch with our team to discuss whether a granny flat makes sense for your property. We're happy to answer questions, explore your options, and help you plan ahead so you're ready when 2026 arrives.

Have questions about your property or the new legislation? Contact us today for a no-pressure chat about what's possible.