New Zealand's Enhanced Granny Flat Policy: a Game Changer for Homeowners -

Introduction

In a significant move to address housing affordability and provide more flexible living arrangements, the New Zealand government this week has announced changes to the regulations surrounding the construction of granny flats.

Is New Zealand’s enhanced Granny Flat Policy a game changer for Homeowners ? These amendments aim to simplify the building process, allowing homeowners greater freedom to add secondary dwellings to their properties. The Policy is also a potential game changer for ageing in place.

Key Changes in the Policy

The cornerstone of the new policy is the increase in the maximum allowable size for granny flats that can be built without requiring building consent.

Previously set at 60 square metres, the threshold has now been raised to 70 square metres. This change is designed to provide homeowners with more space and flexibility when planning secondary dwellings.

To qualify for this exemption, the granny flat must meet specific criteria under NZ government policy.

Simple Design Compliance: The structure must adhere to the New Zealand Building Code, ensuring safety and durability, making it easier to build a granny flat.
Licensed Professionals: Construction work must be carried out or supervised by licensed building practitioners to maintain high-quality standards under building consent rules.
Council Notification: Homeowners are required to notify their local council before commencing construction and upon completion, facilitating proper record-keeping and oversight under Building consent changes.

It’s important to note that while building consents may not be necessary under these conditions, resource consents might still be required depending on local regulations.

Rationale Behind the Amendments

The government’s initiative is rooted in the need to increase the supply of affordable housing options and support diverse living arrangements. By easing the restrictions on granny flats, the policy aims to allow building consent exemption for small standalone dwellings, known as granny flats to be in force by early 2026.:

Support Families: Provide additional living space for extended family members, offering a solution for multi-generational households.
Generate Rental Income: Enable homeowners to earn supplementary income by renting out the secondary dwelling. Property investors believe the new policy will boost NZ’s housing.
Optimize Land Use: Encourage the efficient use of existing residential land, particularly in urban areas where space is limited.

This approach aligns with broader objectives to address housing shortages and promote sustainable urban development.

Industry and Public Response

The announcement has garnered positive reactions from various stakeholders. The New Zealand Property Investors Federation, for instance, has expressed support, highlighting that the policy could significantly boost the country’s housing supply.

Spokesperson Matt Ball noted that many homeowners previously found existing regulations overly restrictive and welcomed the newfound flexibility.

Property Investors Federation spokesperson Matt Ball says he applauds the change.

However, some experts have raised concerns regarding potential risks associated with the exemption. Engineering New Zealand emphasized the importance of maintaining building standards to ensure safety and durability, suggesting that while the policy is a step in the right direction, careful implementation is crucial.

Implementation Timeline

The government has outlined a clear timeline for the rollout of these changes:

Mid-2025: Amendments to the Building Act are expected to be enacted, formalizing the new size exemption and related criteria making it easier to build a granny flat.
Early 2026: The building consent exemption for granny flats up to 70 square metres is anticipated to come into force, allowing homeowners to commence construction under the new guidelines.

Homeowners are advised to stay informed about local council requirements and ensure all conditions are met before proceeding with construction.

Conclusion

New Zealand’s revised granny flat policy represents a progressive step towards enhancing housing options and accommodating diverse living needs.

By increasing the allowable size for consent-free granny flats and streamlining the building process, the government is empowering homeowners to make better use of their properties. As these changes take effect,

it’s essential for homeowners to collaborate with licensed professionals and adhere to all stipulated criteria to ensure the successful realization of their granny flat projects.