Granny Flats: Easier? Yes — Unlimited? No.

What’s Changed Under the New Government Rules?

From early 2026, new national rules allow many property owners to build a small, stand-alone dwelling (granny flat) of up to 70 m² without needing a building consent or a resource consent, if all exemption criteria are met.

These changes remove some red tape in the consenting process.

A granny flat built under these new rules must still fully comply with the Building Code and be designed and built or supervised by Licensed Building Practitioners.

Under the law, a granny flat is referred to as

• Building Act (BA) - small stand along dwelling - Building consent process
• Resource Management Act (National Environmental Standards for Detached Minor Residential Units: NES-DMRU) - Detached minor residential unit - Resource consent process

Both terms refer to the same type of building.

Step-by-step guide | Plan a granny flat

Building Performance have produced a step-by-step guid which gives a high level overview of what is needed to plan, design, build and complete a granny flat using the building consent exemption.

You can view this guide here.

Common Misconceptions — Explained
“It’s a free-for-all — anyone can build anything now.”
No — there are strict conditions (size, location rules, design, licensed builders) and you still need to apply for a PIM. You then have two years to build from when your PIM is granted, and you must notify Council when you start your build. You must notify Council of the completion of your building within 20 days.

"I can upgrade my existiung sleepout to meet the new exemption rules without needing consent."
No. The new exemptions only apply to new granny flats and any current sleepout is covered by its original Building Consent and/or Resource Consent. If you want to make changes, you may need another consent, depending on what those changes are.

“Council checks and approves everything before you build.”
Under the new rules, Council is not checking or approving compliance during construction — responsibility sits with the homeowner and licensed professionals. Council’s involvement is limited to issuing the PIM and recording final documentation.

What About Costs & Rates?

Council & Build-Related Costs
Even without a building consent:
• You may still pay Council fees (PIM, development contributions, service connection costs).
• Connecting to water, wastewater, stormwater systems — or providing compliant on-site systems — can incur significant costs and additional consents/approvals.

Rates Changes
• Adding a granny flat is considered a property improvement — which typically increases your property’s value and therefore your rates will likely increase.
• If the granny flat connects to Council-provided services (like water or wastewater), this can also affect targeted rates associated with those services.

Frequently Asked Questions

Q: What are the new rules?
A: You may be able to build a granny flat up to 70 m² without a building consent and/or a resource consent, but only if it meets strict design and siting conditions, and is built or supervised by licensed professionals.

Q: Do I still need to tell Council?
A: Yes. You must apply for a PIM before building and provide final documentation after the build within 20 days of completion.

Q: Will my rates go up?
A: Most likely, yes — because adding a dwelling typically raises property value and service use.

Q: Do I need to connect my granny flat to Council services?
A: Yes, if Council water, wastewater and stormwater services are available then you must be connected to them. It is important to check whether the pipes on your property are of the correct size so there is capacity for the additional flows.

Q: Will I have to pay a development contribution for my granny flat
A: Yes. Development contributions are used to help pay for additional infrastructure needed. This includes roads, water services and parks & reserves.

We advise that you contact us to discuss your plans as early as possible in the process to avoid costly redesigns. You can book a meeting with a duty planner by calling us on 0800 422 522 or emailing building@rangitikei.govt.nz.

More information is available from these websites:

Granny flats exemption: Guidance and resources | Building Performance
National Environmental Standards for Detached Minor Residential Units 2025