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What are the new rules for granny flats in New Zealand?

Rules for building Granny Flats

In New Zealand, the ongoing housing crisis has led to a growing demand for affordable and flexible living solutions. In response to this pressing issue, the government is taking proactive measures to reform housing regulations. One significant change is the introduction of new rules governing granny flats, commonly referred to as minor residential units (MRUs). These small, self-contained dwellings offer an innovative solution for homeowners looking to maximise their property while providing additional living space for family members, young adults entering the housing market, or even short-term rental opportunities.

The recent proposals aim to simplify the construction process and eliminate some of the bureaucratic hurdles that have historically hindered the building of these units. With the rising cost of living and home ownership becoming increasingly out of reach for many New Zealanders, the government believes that making it easier to construct granny flats could be a vital step toward addressing the nation’s housing shortage. This article will delve into the specifics of the new regulations, including size restrictions, consent exemptions, and compliance requirements. We will also explore the broader implications of these changes for homeowners and potential builders, highlighting the benefits and considerations that come with embracing this new approach to housing..

Understanding Granny Flats

Granny flats refer to small, self-contained dwellings built on a property that already has a primary residence. They can also be referred to as ancillary dwellings, family flats, or minor dwellings. These flats provide a flexible housing option for various demographics, from young adults seeking affordable living arrangements to elderly relatives needing proximity to family members.

Key Changes to Regulations

The New Zealand government’s proposed rule changes, outlined in a recent discussion document, are aimed at streamlining the building consent system. Here are the key updates:

1. Size and Structure Regulations

Under the new rules, granny flats can be up to 60 square metres in size. This allows for adequate living space, with the potential for up to two bedrooms, a living area, kitchen, and bathroom. The dwelling must be detached from the main house and limited to one storey.

2. Consent Exemptions

One of the most significant changes is the proposal to exempt certain granny flats from requiring building consent. Homeowners will need to ensure that their constructions comply with specific criteria but will no longer have to go through the lengthy consent process for simpler builds. 

3. Compliance with Building Codes

Although the new rules aim to reduce red tape, all granny flats must still adhere to the New Zealand Building Code. This ensures that the flats are safe, healthy, and durable. An engineer’s report will not be required to expedite the process, but builders must ensure compliance through proper design and construction practices.

4. Infrastructure Considerations

While the exemption from building consent simplifies the process, homeowners should be aware of the impact on local infrastructure. Building additional dwellings can strain resources like water, wastewater, and community facilities. The government is considering how to manage this increased demand on infrastructure without triggering the need for development contributions.

5. Permitted Activity Standards

The new National Environmental Standards (NES) under the Resource Management Act (RMA) will classify MRUs as a permitted activity, provided they meet specific criteria. This includes:

  • Setbacks from property boundaries, with options ranging from no minimum requirements to 2m from the front boundary.
  • Maximum building coverage of up to 70% of the site, depending on the local council’s regulations.
  • Ensuring permeable surface areas account for 20% to 30% of the site to manage stormwater effectively.

6. Potential Restrictions

It’s important to note that while these changes are intended to simplify the process, existing district plan restrictions may still apply. For instance, if a landowner wishes to rent the granny flat out on platforms like Airbnb or run a home business, they must comply with local zoning laws.

Benefits of the New Rules

These changes to granny flat regulations in New Zealand are designed to address the ongoing housing crisis by:

  • Increasing Housing Supply: By allowing more granny flats, the government hopes to provide additional affordable housing options for various demographics.
  • Simplifying the Construction Process: The new exemptions from building consent aim to reduce time and costs associated with constructing small dwellings.
  • Supporting Families: Granny flats enable families to live closer together while maintaining independent living spaces, catering to an ageing population and young adults.

When is this happening?

The new rules regarding granny flats in New Zealand are expected to come into effect in mid-2025, pending the completion of the legislative process and any necessary consultations. This timeline allows for the government to finalise the proposals and ensure that all local councils are adequately prepared to implement the changes. During this period, homeowners and potential builders can begin to assess their properties and consider the feasibility of adding a granny flat. The anticipation surrounding these new regulations has generated interest among families seeking additional living space, young people looking for affordable housing options, and property owners wanting to maximise their land use. As the implementation date approaches, further resources and guidance will likely be provided to help navigate the new framework and ensure compliance with the updated standards.

The new rules for granny flats in New Zealand represent a significant shift in housing policy aimed at tackling the housing crisis. By simplifying the construction process and increasing the availability of affordable housing options, these regulations may help meet the growing demand for diverse living arrangements. The move towards allowing homeowners to build minor residential units (MRUs) without the need for extensive resource consents is particularly noteworthy, as it addresses the barriers that have previously hindered the construction of smaller, more affordable homes.

For homeowners considering building a granny flat, it is essential to stay informed about the requirements and ensure compliance with local regulations to make the most of these new opportunities. This includes understanding the criteria for building size, placement, and the necessary notifications to local councils. Engaging with licensed building practitioners can also ensure that construction meets the required standards and remains safe and durable.

As these regulations come into effect, they hold the potential to reshape the housing landscape in New Zealand, providing greater flexibility for families and individuals alike. Not only can granny flats serve as a means of accommodating extended family members, but they can also offer a viable solution for young adults seeking independence and affordability in housing. The implications extend beyond personal living situations; increased availability of these units may alleviate some pressure on the rental market, contributing to overall housing affordability.

In conclusion, the introduction of new granny flat regulations marks an encouraging development in New Zealand’s approach to housing. By fostering a more supportive environment for the construction of these smaller homes, the government is taking proactive steps towards addressing the pressing housing needs of its citizens. Homeowners are encouraged to explore these options and consider how they can contribute to a more diverse and accessible housing market, ultimately fostering a sense of community and resilience within their neighbourhoods. Have a look at our page on retirement house design options.