A backyard home under 70m²: understanding the exemption pathway

For families looking at a second small home on their land, the granny-flat exemption is worth understanding properly. It applies to certain new standalone dwellings up to 70 square metres that meet the prescribed conditions. It is a defined pathway, not a general rule that every building below that size can be installed without further checks.

Start with eligibility, not just size

MBIE's exemption guidance sets out the requirements for qualifying dwellings and the steps homeowners and professionals need to take. Ask your designer or supplier to explain how the proposed home fits that guidance. The building's layout, construction and other conditions matter alongside its floor area.

A prefab or expandable home should be assessed as the specific design you intend to buy. Avoid treating a product category or a marketing description as proof of compliance.

The Building Code still applies

The exemption removes the building-consent requirement for qualifying work; it does not remove the requirement to comply with the Building Code. MBIE also requires the work to be carried out or supervised by licensed building professionals as specified by the pathway.

Confirm who is responsible for each part of the project and what records they will provide. This gives you a clearer handover as well as a clearer purchase conversation.

The site has its own questions

Homeowners using this pathway must obtain a Project Information Memorandum before starting and provide the required completion notification and documentation to the council. Other requirements affecting the land and service connections should be checked separately. The exemption is not a promise that all planning or infrastructure obligations disappear.

• Check the current MBIE eligibility guidance.
• Confirm the design and the responsible professionals.
• Obtain the required PIM before work starts.
• Clarify site and service requirements with the council.
• Keep the required completion documents together.

Use the pathway with a complete plan

A small dwelling can be a practical way to create room for family or a more independent living arrangement. The most useful next step is to connect the building specification with the property's requirements. Official guidance and site-specific professional advice make that conversation more concrete than a headline about size alone.