Granny Flats: Be Careful What You Wish For

In 2025 the New Zealand government announced a significant shake-up in building legislation, aiming to make it easier and cheaper to build granny flats (small, self-contained units) on existing properties and as of January 15th 2026 it has come into effect, generating a lot of buzz and headlines galore. While "no building consent" sounds like a win for your wallet and your timeline, there is a lot more happening under the hood than the headlines suggest.

Before you start digging footings, here is what you need to know about the proposed rules and why cutting out the Council might not be the "easy street" it is being promoted as.

The Technical Essentials: What Is Allowed?

The new legislation focuses on units up to 70m². To qualify for the streamlined process, these units generally must meet the following criteria:

• Size: Maximum floor area of 70m².
• Facilities: Must be self-contained with a kitchen and bathroom.
• Site: Must be built on land already containing a primary dwelling.
• Cannot be an extension/renovation of an existing structure.

The "PIM" Requirement: Even without a full building consent, you will still need a Project Information Memorandum (PIM). This ensures the project doesn't clash with underground services or specific land hazards (like flooding). If you do have any clashes you will need to go through the resource consent process.

The Paperwork Path: It’s Not A Free-for-All

"No consent" does not mean "no rules." The government has enacted a system that still requires a high level of professional accountability:

1. 10-Day Council Turnaround: A shortened window for Council to process the initial notification. Council will respond with any concerns, but will not mention specifics, as they do with RFIs (Request for Information).
2. Professional Oversight: The build must still be overseen by a Licensed Building Practitioner (LBP). This could mean all work is carried out by a LBP and or their team, or it could mean that you do some of the work with the LBP doing thorough sign offs (in the end it’s their name on the paperwork and they are responsible for ensuring the build meets code.
3. Built to Code: The unit must comply 100% with the NZ Building Code.
4. Post-Build Documentation: Once finished, you must provide the Council with "as-built" drawings and associated records of work/documentation to ensure the Council records are updated. These require a high level of detail and need to be drawn up by a licensed draftsperson.

The "Side Serving" You Didn't Order: Development Contributions

Many homeowners assume that if there is no building consent, there are no Council fees. Unfortunately, this isn't the case.

Most Councils charge Development Contributions (DCs). This is a fee to cover the extra strain a new dwelling puts on local infrastructure (pipes, roads, and parks). Depending on your local Council, these can range from $5,000 to well over $40,000. This cost remains regardless of the consent process, so it’s vital to check your local fee schedule before you start.

The Big Risk: You Are On Your Own When It Comes To Under-performance By Your Builder

The headline "No Building Consent" has a hidden catch: No Council Inspections.

Usually, a Council inspector visits the site at key stages (foundations, framing, pre-line, etc.) to act as a third-party check that the dwelling is being built to NZ Building code. Without a consent, that safety net is gone.

• Quality Control: If the LBP makes a mistake or cuts corners, there is no independent inspector to catch it. Note, Council have previously stated, that in the majority of jobs there are failed inspections that need remedial work to make sure the work is 100% up to the NZ Building code.
• Resale Issues: Future buyers (and their banks) may be wary of a dwelling that has never been officially inspected by a local authority.

Insurance: You must be certain your documentation is flawless, or you could face major headaches with insurance claims down the line.



Why Your Choice of Builder Matters More Than Ever

In this new legislative environment, your builder isn't just a contractor; they are your only line of defense. Because you are forgoing Council inspections, you need to choose a builder with:

• A Solid Reputation: You are trusting them to follow the NZ Building Code to the letter without anyone looking over their shoulder.
• Comprehensive Documentation: You need a designer and/or builder who provides a full "paper trail" of the build for your future records.
• No trail of company failures or under performance - you can check this by searching companies register and public reviews (google, social media and their website).

So What Are My Options?

Firstly go for the win/win option and select a builder who has a brand reputation that they will want to protect by doing a great job first time or putting it right if something goes wrong and go down the no-consent path.

If you want a belts and braces solution opt into the consent process. Opting into the consent process means for a relatively small cost (likely around $5,000) and an extra 10 days in the Council queue, you get:

1. Independent third-party inspections throughout the build.
2. Final Code Compliance Certificate (CCC), which protects your property value.
3. Peace of mind that your investment is safe and legal.

The Bottom Line: Granny flats are a fantastic way to add value and space, but the "unconsented" route puts all the risk on the homeowner. Make sure you have an expert in your corner who knows the NZ Building Code inside out.

Thinking about adding a granny flat to your property? Get in touch today to discuss the best path forward for your site and your budget with a Pzazz Builder with our 20+ years of experience and a brand we stand behind.