New Zealand is one step closer to making it easier (and cheaper) for homeowners to build a small “granny flat” or stand-alone minor dwelling in their backyard. The Building and Construction (Small Stand-alone Dwellings) Amendment Bill aims to cut red tape by letting some small homes be built without the requirement of a building consent.

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If this law passes, you could build a small stand-alone dwelling up to 70 square metres (about the size of a two-bedroom tiny home) without going through the usual building consent process. The Bill proposes adding a new Schedule 1A to the Building Act 2004, creating an exemption from building consent for qualifying minor dwellings.

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Key Requirements

• Size / design limits: Maximum 70 m², single storey, and must be a new, separate structure (not an addition).

• Building Code compliance: Even without a consent, the dwelling must meet all Building Code standards for safety and durability.

• Qualified builders only: Work must be done or supervised by a licensed building professional.

• Council notification: Homeowners must notify the local council before and after construction.

• Infrastructure charges: Councils can still collect development or infrastructure fees.

• No back-dating: Only new builds after the law takes effect would qualify.

• Resource Management Act 1991: Even where building consent may not be required, the RMA may still control where you can build.

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Benefits for Homeowners

The goal of this reform is to make it easier for families to build extra accommodation, such as a flat for elderly parents, adult children, or rental income, without months-long consent processes and high compliance costs.

• Reduce costs and delays in building extra housing

• Encourage small, flexible housing options like backyard cottages or rental units

• Simplify compliance, especially for simple, low-risk structures

If Parliament passes the Bill this year, the changes are expected to come into force in early 2026.

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If you want to discuss any aspects of building contracts please get in touch with Prue Miller. 

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