What Are Granny Flats (Minor Dwellings) and What’s Changing in 2026?
Auckland homeowners and investors are increasingly interested in adding granny flats / minor dwellings to their properties. These are small, self-contained homes with their own kitchen, bathroom, bedroom, and living area, ideal for generating rental income or housing extended family members.
If you are thinking about adding a granny flat? Our in-house team can take care of the feasibility, surveying, and planning, making your project simple, and stress-free.
In this article, we will break down what the 2026 changes will enable and compare the proposed rules to current granny flat regulations in NZ.
What is a granny flat?
A “Granny flat” is the casual term for a minor dwelling. It refers to a fully self-contained, detached home on the same site as an existing primary house. Unlike a simple sleepout or studio, a granny flat has all the amenities of a standalone house, such as kitchen, bathroom, and living space, but shares the section with the main dwelling. In Auckland and elsewhere in New Zealand, minor dwellings have traditionally been used to keep families close, for example, providing an independent living space for an elderly parent or young adult,or to generate rental income from unused backyard space. Upfront site surveying (topographic and services plans) helps confirm where a unit can go, how it connects for servicing, and what setbacks may apply Under the Auckland Unitary Plan and new Rules of the National Environmental Standard. The Residential – Single House Zone historically allowed one house per site, but also permitted one minor dwelling unit as a secondary house provided it was under a certain size and met council site requirements.
For example, at the moment in the Single House Zone a minor dwelling must not exceed 65 m² floor area, excluding decks/garages and each site can have no more than one minor dwelling. Other residential zones, like Mixed Housing Suburban/Urban, already allow multiple full-sized dwellings per section, so adding a granny flat has been possible in many areas via the standard consent process. However, no matter the zone, current laws require going through building consents and possibly resource consents and compliance steps to build a granny flat which is both time-consuming and costly.
Current Granny Flat Regulations in NZ
Building a granny flat in New Zealand means you must follow the full consent process. In practical terms, this includes:
Building Consent:
You need to apply for a building consent for the new dwelling. The council must approve your architectural plans to ensure the minor dwelling will meet Building Code requirements for structure, weather-tightness, fire safety, and more. Even a simple one-bedroom granny flat currently requires this official consent and inspections process.
Resource Consent:
Depending on your local district or city plan rules, you might also need a resource consent. In Auckland’s Single House residential zones, adding a second dwelling on a site was generally allowed only if it met specific standards like the 65m² size limit, height, setbacks, parking, etc. If your proposed granny flat breached any zoning standard, or works breached any other relevant standard you have to obtain resource consent from the council’s planning department.
Design Plans & Fees:
This would result in the need to hire architects, engineers, and more, draw up full plans for the unit, then pay application fees for the consents and respond to any further council requests. Development contributions or infrastructure fees are also typically charged by councils to help fund water, sewer, and road upgrades to service the new unit. All of this usually adds up to tens of thousands of dollars before construction even begins.
Inspections & Compliance:
Once you do get approval and start building, council inspectors must sign off at various stages (underslab plumbing, drainage, foundations, roofing, framing, cladding, preline, waterproofing and final inspection, etc) and issue a Code of Compliance Certificate at the end. The whole process can easily stretch over a year. As Housing Minister Chris Bishop noted, “It’s currently far too hard to build the homes New Zealanders need, with even the simplest dwellings requiring time-consuming and costly consent processes” under the current system. In other words, a small 2-bedroom granny flat has faced almost as much bureaucracy as a full-sized new house build.
Current Restrictions:
Current rules still limit what you can build as a “granny flat”. The minor dwelling generally must remain secondary to the main house as you cannot subdivide the section to give the flat its own title or separate ownership unless you go through a formal subdivision consent with minimum lot sizes. For instance, in Auckland’s Single House Zone you would generally need at least 600 m² of land per dwelling to subdivide; a typical site of 800 m² could not be split into two legal titles under current standards. This has meant many granny flats are rented out or used by family, but not sold separately. Additionally, only one minor unit has been allowed per site, you couldn’t build two tiny houses in your backyard under existing rules. And if the minor unit exceeded the size limit (usually 65 m²), it was no longer considered “minor” and would be treated as a full additional house which is often not allowed in single-dwelling zones.
What the New 2026 Rules Will Allow
From early 2026, the government plans to introduce nationwide changes that make it easier to build a granny flat, but not completely unrestricted. These reforms, part of a new Building Consent exemption and a National Environmental Standard (NES) for land use, essentially simplify the process for one small secondary dwelling on a property, as long as the dwelling is designed to meet the Building Code, and is built or supervised by a Licensed Building Practitioner. Some work may need to be undertaken by professionals, like us.
Here’s what the proposed 2026 rules will enable:
Build granny flats up to 70 m² without Building Consent:
You will no longer need to obtain a building consent for a small standalone dwelling up to 70 square meters. As long as the granny flat’s design is simple and compliant with the Building Code, and it is constructed or supervised by licensed building professionals, it will be exempt from the normal building consent process.
No Resource Consent Required (in most cases):
The government is also removing the need for resource consents for one granny flat per property. Through a National Environmental Standard, all councils must permit one minor dwelling of up to 70m² on a site with an existing house, in residential and rural zones, without resource consent. This means whether your land is zoned Single House, Mixed Housing, General Rural, the local district plan cannot insist on a resource consent for the granny flat, unless the site has specific overlays, is subject to hazards, has servicing constraints or earthworks are needed that may otherwise require a land use resource consent. Our surveying services in Auckland make sure your site layout, drainage, overall site layout and setbacks are fully compliant before you build your minor dwelling.
Fast-Track Construction:
With both building and resource consents generally out of the picture, there will be no permit delays, no uncertainty of consent notification, neighbor objections and alike. Essentially, you can move straight to the building phase after ensuring your plans meet the published criteria. This could shave months off the project timeline and save thousands in consultant and council fees.
Flexibility for Residential & Rural Properties:
The new rules apply not just in cities but also rurally. Even rural landowners may be allowed to put a 70m² cottage on their property as of right. Farming families, for example, could potentially build one minor dwelling without jumping through previous consenting hoops. Only one minor unit is allowed per site, you can’t pepper your lifestyle block with multiple tiny homes unless you formally subdivide or get additional consents beyond this exemption.
Slightly Larger Size Limit:
The magic number is 70 square meters of floor area which has increased from previously 65 square meters. Seventy square meters is enough for a comfortable two-bedroom unit with a small living room, kitchen, and even two bathrooms. By setting this uniform cap nationwide, the law ensures granny flats remain “minor” in scale, but gives a tad more design freedom than before. Decks, garages, and porches might be excluded from that size count, allowing functional additions without eating into the 70m² cap.
Strategic Benefits and What It Means for Homeowners
For Aucklanders in particular, where property values are high and there is a squeeze on housing these changes are a game changer. If you have a decent-sized backyard or underutilised space next to your house, you can consider adding a minor dwelling much more easily than before.
This could mean:
- Rental Income: A 2 bedroom granny flat in Auckland could rent easily for $650 per week depending on area. With lower build costs, no consent delays and high demand for rentals, this is an attractive investment. Essentially, you can create a passive income stream on land you already own, at lower upfront cost.
- Family Accommodation: Multigenerational living gets simpler. You can build a unit for elderly parents to live nearby or a space for adult children. In Auckland’s tight housing market, this opens up flexible living arrangements without needing to buy a whole new property.
- Property Value and Utilization: Adding a legal minor dwelling can boost your property’s value by increasing its utility. Even though you can’t subdivide and sell it separately under the exemption, your property becomes a “home and income” type, often very attractive to buyers as future owners could rent it out or use it for family. Land that was previously under-used – big front yard for example can now host an extra household.
If you’ve been put off by council red tape before, keep an eye on matters and prepare for 2026 changes.
You can start a feasibility plan, hire surveyors to ensure your proposed granny flat design meets the criteria. In Auckland, Watercare will need to be notified for new water/wastewater connections and may charge infrastructure growth fees. Stormwater drainage is another consideration, you might need to install a soakage pit or detention tank on-site if connecting to stormwater pipes isn’t straightforward and more. Council development contributions will also be charged.
Lastly, while Auckland is taking the spotlight, these changes apply to the rest of the country as well. Councils nationwide will be operating under the same enabling rules. This uniform approach means regions that previously had more restrictive rules will be brought up to the new standard. Homeowners throughout New Zealand can start exploring the idea of a minor dwelling on their section as a feasible project rather than a regulatory nightmare.
Need help navigating the new granny flat regulations get in touch with Fluker. Our team can provide expert advice, and surveying to ensure your project complies with the 2026 standards and maximises your property’s value. Contact us to discuss how a granny flat could work for your Auckland site and take advantage of these groundbreaking changes in the rules for granny flats in New Zealand.
