The Granny Flat Law That Hasn't Passed - But Everyone's Watching
It’s August 2025 - and while many Kiwis were hoping for a new law to simplify building granny flats, that law still hasn’t passed.
In 2024, the New Zealand Government proposed a reform that would allow homeowners to build a small secondary dwelling - up to 60 or 70 square metres - on their property without needing resource consent or, in some cases, even building consent.
But despite early excitement, the proposal is still making its way through Parliament. That means the law is not yet in effect - and under current rules, you still need to go through the usual approval process.
What Was Proposed - And Why It Mattered
In July 2024, the Government announced plans to cut red tape and make it easier for people to build minor residential units (MRUs) - often referred to as granny flats - on residential, rural and Māori land.
Two major changes were put on the table:
A Building Act amendment to allow standalone units under 60 or 70m² to be built without building consent, as long as they are built to code and by qualified professionals.
A National Environmental Standard (NES) that would treat these MRUs as permitted activities in most zones - meaning no resource consent would be required if certain site conditions are met.
These changes aimed to unlock thousands of new housing opportunities - helping families build for elderly parents, adult children, or rental income without jumping through the usual council hoops.
Sources: MBIE, Building.govt.nz
But As Of Today - The Law Still Isn't Active
While the proposals have made progress - including the Building Act amendment passing its first reading in May 2025 - nothing has officially changed yet.
That means:
You still need building consent from your local council.
You still need resource consent in many zones.
All projects must meet current planning rules - including height, setbacks, drainage, and zoning conditions.
So if you’re planning to add a granny flat right now - you must follow the existing process and shouldn’t assume any shortcuts apply yet.
What Homeowners Should Do Right Now
Don’t skip consents - Until the law is officially passed and in force, council rules apply as normal.
Talk to your council - Every district has slightly different planning rules, and your site might have unique conditions (like flooding zones, easements, or heritage overlays).
Watch for updates - These changes are expected to go through later in 2025 or early 2026, depending on how Parliament progresses.
If and when the law passes, it will likely require:
That your unit be detached and under 60 or 70m²
That it be built by a licensed professional to meet the NZ Building Code
That you notify the council before and after building - even if no consent is needed
Why the Tiny Home Industry Is Paying Attention
Portable and prefab home companies are closely watching these changes.
Once the law takes effect, their transportable, code-compliant homes will be ideal for fast, affordable secondary dwellings.
These types of homes offer:
Fast installation - often completed in weeks
Lower build costs - starting from around $40,000 to $110,000 NZD
Better compliance - when built to meet NZ standards
Minimal disruption - since they’re built off-site and delivered ready to go
But again - for now, building and resource consents are still required, so buyers should not assume they can skip the process.
The Bottom Line
The proposal to allow granny flats without consents has huge potential - but as of August 2025, it’s not law yet.
Homeowners should stay informed, plan ahead, and avoid jumping the gun. If you're considering a minor dwelling, talk to professionals and make sure your project is approved under current rules.
When the law does pass - possibly later this year - it could unlock massive opportunities. But for now, it’s still a waiting game.
