In a bold move to tackle housing issues, New Zealand’s government is paving the way for easier granny flat construction. These compact, self-contained homes, nestled on existing properties alongside the main house, are emerging as a key solution to the country’s housing crunch.
Recent proposals from the Ministry of Business, Innovation, and Employment aim to streamline the regulatory maze surrounding these minor dwellings, ensuring more Kiwis can reap the benefits of this affordable housing option.
Here are the proposed changes to granny flat regulations NZ in 2024, and how they can benefit you.
Table of Contents
Compact Living, Expansive Possibilities: Granny Flats Make a Comeback
Granny flats, affectionately dubbed “minor dwellings,” are more than just quaint backyard cottages. These self-sufficient units, typically capped at 60 square metres, serve as independent living spaces for family members or potential rental properties.
By maximising existing land use, they offer a swift and cost-effective housing solution, aligning perfectly with the government’s vision to cut through red tape and accelerate building consents.
As housing prices in New Zealand continue to rise, many young adults find themselves living at home longer than expected. This presents a challenge for many families. A granny flat offers a practical solution, providing extra room for family members young and old, or the potential for additional income through rentals.
It’s a sensible way to adapt to changing family needs while potentially increasing your property’s value.
The government’s proposed changes aim to make it easier to build granny flats in your backyard. This new approach could significantly reduce the time and costs associated with creating additional living space on existing properties.
Proposed Changes to Granny Flat Regulations in NZ
Currently, building a granny flat involves navigating a complex web of legislation. The Building Act 2004 and Resource Management Act 1991 form the backbone of residential construction regulations.
Recent proposals aim to amend these acts, allowing for the seamless construction of granny flats up to 60 square metres with minimal bureaucratic hurdles.
This proposal introduces a new National Environmental Standard (NES) under the Resource Management Act. This standard promises to bring consistency to the rules governing minor residential units across the country, potentially revolutionising the approval process.
From Plan to Reality: The Consent Process
There is currently two types of consents needed before building a granny flat in New Zealand. Resource consent, and building consent.
Resource consent evaluates your project’s potential environmental and community impacts. Building consent focuses on structural integrity and safety standards.
The proposed changes by the government would allow granny flats up to 60 square metres to be built without needing either consent.
However, this is still a proposal under consultation and not yet implemented. Subscribe to our newsletter, and we’ll keep you updated when we know more.
| Building Consent | Resource Consent |
|---|---|
| Focuses on how the granny flat is built. | Focuses on where and how the granny flat affects its surroundings. |
| Ensures the structure is safe and sound. | Ensures the project complies with local zoning rules. |
| Checks if the building meets the New Zealand Building Code. | Considers environmental impacts. |
| Looks at things like structural integrity, plumbing, and electrical work. | Looks at things like property setbacks, height restrictions, and land use. |
| Usually required for most construction projects. | May not always be required, depending on local rules. |
| Deals with the technical aspects of construction. | Deals with how the granny flat fits into the neighbourhood and environment. |
Designing Your Dream Granny Flat
When bringing your granny flat vision to life, several key factors come into play. Compliance with the New Zealand Building Code is non-negotiable, ensuring your structure meets safety and quality standards. Infrastructure considerations, such as water supply and sewage systems, often necessitate professional assessment.
Privacy becomes a delicate balancing act, requiring thoughtful window placement and sound barriers to create harmonious living spaces for both the granny flat and occupants of the main house.
Essential amenities like kitchens and bathrooms transform these units into truly self-contained homes. The design should also consider the site area and how the additional unit will integrate with the existing property.
Granny Flats vs. Conventional Housing: A Cost Comparison
In New Zealand’s ever-tightening housing market, granny flats are emerging as a cost-effective alternative to traditional homes. Let’s break down the numbers:
Granny Flat Costs:
- Average price range: $100,000 to $200,000
- Size: Up to 60 square metres
- Cost per square metre: Approximately $2,000 to $3,500
Conventional Housing Costs:
- Median house price in NZ (as of 2023): Over $800,000
- Average new build cost: $350,000 to $500,000 (excluding land)
- Cost per square metre for new builds: $2,500 to $5,000
Key Financial Advantages of Granny Flats:
1. Lower Initial Investment: Building a granny flat requires significantly less capital than purchasing or building a conventional home.
2. Existing Land Use: Granny flats use land you already own, eliminating buying land.
3. Reduced Consent Fees: With proposed changes, granny flats may face fewer regulatory hurdles, potentially lowering consent-related expenses.
4. Rental Income Potential: A granny flat can generate $300 to $600 per week in urban areas, offsetting construction costs.
5. Lower Ongoing Costs: Smaller spaces mean reduced utility bills and maintenance expenses.
6. Increased Property Value: Adding a granny flat can boost your property’s overall value without the cost of relocating.
7. Flexibility: Granny flats offer a scalable solution, allowing homeowners to expand living space without committing to a full-scale new build.
While the cost per square metre might be comparable, the overall investment in a granny flat is substantially lower than conventional housing options.
In a housing market where affordability is increasingly challenging, granny flats offer a pragmatic, cost-effective solution that’s gaining traction across New Zealand.
Beyond the Numbers: Social Impact and Housing Solutions
Granny flats offer more than just financial benefits; they’re reshaping communities and providing new home options for various groups. For seniors and individuals with disabilities, these units provide independence while maintaining close family ties.
In Māori and Pasifika communities, granny flats support multi-generational living arrangements, preserving cultural values and addressing overcrowding issues.
These small dwellings are also becoming increasingly popular as a way to provide affordable housing options, particularly in high-cost areas. They offer a unique solution to take people from temporary housing to a more permanent, yet still affordable, home.
Home Sweet (Second) Home: Granny Flats Redefine Property Potential
As New Zealand embraces higher-density living, granny flats are poised to play a pivotal role in urban planning. Government proposals aim to slash bureaucratic red tape, potentially allowing dwellings up to 60 square metres to bypass full resource consent requirements in certain situations.
This shift towards streamlined construction aligns with broader trends in both residential and rural zones. By maximising existing land use, granny flats offer a sustainable solution to housing shortages without drastically altering landscapes.
The government’s proposed changes reflect a long-term policy shift to increase housing supply and provide more options for homeowners and renters alike.
However, environmental considerations remain paramount. Local councils will continue to play a role in assessing potential impacts, ensuring that increased housing density doesn’t come at the cost of environmental integrity. The balance between making it easier to build and ensuring quality, safe housing is at the heart of these proposed changes.
As New Zealand charts its course towards a more flexible and responsive housing market, granny flats stand as a testament to innovative solutions. By embracing these compact dwellings, we are addressing immediate housing needs and fostering communities that are more adaptable, inclusive, and sustainable for generations to come.
Whether you want to provide extra living space for your family, generate rental income, or simply add value to your property, granny flats represent a promising path forward in New Zealand’s evolving housing landscape.
Frequently Asked Questions
Do the proposed changes relate to tiny homes as well as granny flats?
The proposed changes to the Building Code aim to facilitate the construction of larger secondary dwellings like granny flats, they do not directly apply to tiny houses, which are subject to their own specific regulations and guidance.
How many granny flats would be allowed per property?
The proposal limits each site to one granny flat.
Who can provide feedback on these proposed changes?
The consultation is open to the public, and stakeholders are encouraged to provide feedback on the proposed changes. The consultation period closes on August 12, 2024. You can submit your input via the Ministry of Business website here.
