New rules introduced in January 2026 have made it easier to build some small homes in New Zealand. You may have heard this described as the “granny flat exemption”, but what does that actually mean?
Despite the name, the rules are not limited to homes for elderly relatives. They create a simpler pathway for certain small, self-contained dwellings, whether they are intended for family members, tenants or other residential use.
WHAT HAS CHANGED?
Previously, constructing a new self-contained dwelling would normally require a building consent and might also require a resource consent.
Under the new rules, a qualifying small home of up to 70 square metres can be built without a building consent if it is new, standalone, single-storey and meets detailed design and construction requirements.
There is also a separate set of national planning rules that allows qualifying detached minor dwellings of up to 70 square metres to be built without a resource consent.
The important point is that these are two different legal requirements. A project needs to satisfy the rules applying under both systems.
NO CONSENT DOES NOT MEAN NO RULES
The building must still comply with the Building Code and relevant work must be undertaken or supervised by licensed building professionals.
Before construction begins, the owner must obtain a Project Information Memorandum, usually called a PIM, from the local council. The council must also receive specified documents when the building is completed.
Planning requirements dealing with matters such as boundaries, positioning on the site and the relationship between the small dwelling and the main home must also be satisfied. Other rules, including those relating to earthworks or natural hazards, may still apply.
IS EVERY TINY HOME COVERED?
No. “Tiny home” is a broad description rather than a particular legal category.
A conventional small dwelling may qualify for the new rules, while a tiny house on wheels, converted garage, sleepout or other structure may be treated differently.
CHECK BEFORE YOU COMMIT
There are also contractual issues to consider. Tiny and prefabricated homes can involve substantial deposits, offsite construction, transport and connection to services. The contract should make clear who is responsible for approvals, foundations, delivery, installation, defects and unexpected costs.
The new rules can make building a small home easier, but they do not make every small dwelling automatically consent-free.
Before signing a contract or paying a substantial deposit, check exactly which rules apply to your proposed home and site.
