Granny Flats: What the Proposed 2026 Rules Will Enable – and What They Won’t

By Kaaren Joubert, Planning Manager, Cato Bolam Consultants.

The Government has confirmed significant regulatory changes that will come into effect in early 2026, allowing minor dwelling unitss — often referred to as granny flats — of up to 70m² to be built without the need for building or resource consents, subject to specific conditions.

These reforms are designed to support housing affordability, infill development, and greater flexibility in how landowners use residential and rural-zoned sites. They also aim to reduce compliance costs and speed up delivery of smaller-scale housing.

What Will Be Allowed Under the New Granny Flat Rules

From early 2026, landowners will be able to build a secondary standalone dwelling (granny flat) on most residential or rural-zoned sites without needing:

  • Building consent, provided the unit is designed to meet the Building Code, including being new, standalone and single storey, and constructed (or supervised) by a Licensed Building Practitioner (LBP).
  • Resource consent, under a new National Environmental Standard (NES) which will require councils to permit one minor unit per eligible site as a permitted activity.

This exemption is limited to one granny flat per site and does not override private covenants or title restrictions that may apply.

The proposed changes will support faster delivery of:

  • Intergenerational housing
  • Downsizing options for older residents
  • Rental income opportunities on existing titles
Granny Flat New Rules catobolam.co .nz - Granny Flats: What the Proposed 2026 Rules Will Enable – and What They Won’t

What Still Applies

Even with these exemptions, landowners must still meet important requirements:

  • Council notification is mandatory both before construction begins and once the unit is completed.
  • The unit must still fully comply with the Building Code, including structural integrity, weathertightness, and fire safety.
  • A Project Information Memorandum (PIM) is recommended to identify any site-specific constraints.
  • Councils may continue to charge development contributions to support infrastructure.
  • Construction must involve licensed professionals – there is no DIY exemption.

Also note:
The NES will only apply to sites zoned residential or rural. Areas with overlays, hazards, or servicing limitations may still face restrictions under other regulations.

Minor Dwelling catobolam.co .nz scaled - Granny Flats: What the Proposed 2026 Rules Will Enable – and What They Won’t

Strategic Implications for Landowners

These changes present a practical opportunity for small-scale residential development without the delays of full consenting. For developers, sites previously considered uneconomical may now support low-risk, high-demand housing stock.

This is particularly relevant for:

  • Landowners seeking to unlock underutilised space
  • Developers interested in low-density, quick turnaround housing
  • Projects where subdivision isn’t viable but additional housing is

However, the reforms:

  • Do not allow for subdivision or new titles
  • Do not apply to dwellings larger than 70m²
  • Do not allow for multiple secondary units on a single site

Larger or more complex projects will still need to follow the standard resource and building consent processes.

Granny flat frames catobolam.co .nz scaled - Granny Flats: What the Proposed 2026 Rules Will Enable – and What They Won’t

When Will the New Rules Apply?

The legislative amendments are expected to pass in mid-2025, with the rules becoming active in early 2026. Until then, the existing consent framework remains in force.

If you plan to build a minor dwelling in 2026, we recommend starting your feasibility planning now to ensure a streamlined process when the reforms take effect.

Learn More or Get Expert Advice

For official updates, visit: www.building.govt.nz

Want to know what’s possible on your site?
Contact our expert Planning team at Cato Bolam for tailored advice.

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