If your family is growing and your house is running out of room or you need a place for the grandparents to live, building a sleepout or extra standalone dwelling in your own backyard is now much easier.

From mid-January Kiwi residential and rural-zoned homeowners will no longer need a building or resource consent to build a single-story granny flat – as long as it’s no larger than 70 square metres within their property boundaries. According to government estimates, this change is set to save homeowners up to $5650, cut red tape and eliminate up to 14 weeks of waiting time[i].

The new government rules are regarded as a boon for struggling families who need more space but can’t afford to buy a larger house, landowners seeking to lock-in value from underused space and for developers interested in low density quick turnround projects where subdivision is not viable but additional housing is. 

But these changes don’t mean it’s a free-for-all. Property owners still need to notify their local council about what they plan to do, comply with regulations such as the building code, and use authorised professional tradies during construction. Sites with planning overlays such as flood hazards or infrastructure limitations may still face additional requirements. Further details are outlined on the MBIE website.

Raine & Horne New Zealand General Manager James Shepherd welcomed the changes. “They will make it easier for Kiwis to create flexible housing solutions that support multigenerational living and where allowable, may generate rental income through tapping into the growing demand for smaller, affordable housing,” he said.

“All properties are different and each opportunity for additional dwelling development should be carefully assessed as they require upfront investment, outdoor space and privacy may be affected and not all buyers see value in two dwellings.”

Whether you want to buy, sell or rent a property, don’t hesitate to contact your local Raine & Horne office.

[i] https://www.beehive.govt.nz/release/granny-flat-consent-exemption-takes-effect