June 2026

From early 2026, homeowners have been able to build a standalone dwelling of up to 70 square metres without a building consent, provided the structure meets strict design and compliance criteria.

Under the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025 up to 70 square metres, single storey, stand-alone dwellings can be built without a building consent provided they have a simple design, meet the Building Code, and are built or supervised by suitably licensed professionals. However, you will need to ensure you notify your local council before starting the work, and again once it is completed. You must get a PIM (Project Information Memorandum) from your local council.

One thing that you will need to be aware of is that with fewer checks from your local council, the responsibility to ensure the work is completed correctly shifts to you as the property owner.

Some of the key things you will need to be aware of when you sell a property with a stand-alone dwelling or ‘Granny Flat’ built under these rules:

1. Local councils will not be undertaking inspections of the work. To put a future purchaser’s mind at ease you may wish to keep and compile documentation such as the Project Information Memorandum (PIM) obtained from the council prior to the work, the records of work completed from licensed building practitioners, and any other documentation that may aid in showing compliance.
2. Without the required documentation a prospective purchaser may not be able to obtain insurance or finance from their bank for the granny flat. If the bank views this work as unconsented this may create barriers to prospective purchasers being able to obtain finance to purchase your property.
3. You will need to ensure that you have complied with the local planning rules such as the District Plan which deals with matters like compliance with the setback requirements from both the property boundaries and other buildings on the site. Even though a building consent is not required, a resource consent might still be required for other matters – these new rules are not an exemption from other council requirements.

Done well, a granny flat can add real value. But if built carelessly, the ‘consent free’ benefits may be overshadowed by complications at sale time.

Contact your lawyer with any questions about the new rules.