What changed for granny flats in New Zealand in 2026?

From 15 January 2026, homeowners across New Zealand can build a small standalone dwelling (commonly called a granny flat or minor dwelling) of up to 70 square metres without needing a building consent or resource consent, provided they meet national criteria under the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025.

This is one of the most significant changes to the Building Act in recent years. The Government estimates the exemption saves homeowners up to $5,650 in direct consent fees and cuts up to 14 weeks from the typical build timeline.

For South Auckland families, particularly across Papakura, Manurewa, Manukau, and Papatoetoe, where large sections and multi-generational living are common, this opens a practical path to adding rental income or housing a parent without the traditional consent burden.

What are the conditions for the 2026 granny flat exemption?

The exemption only applies when all of the following conditions are met. Meeting most of them is not enough. All must be satisfied before work begins.

The 2026 granny flat exemption has created real opportunities for South Auckland families, but the title is the first thing we check. A restrictive covenant or a flood overlay can stop a project entirely, and finding that out after you've spent money on design is an expensive lesson. Getting a lawyer involved to review a title before you start is always worth it.

— Philip Norton, Partner, Rice Craig Barristers and Solicitors

What does the 2026 exemption actually exempt you from?

The Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025 creates an exemption from building consent and, in most cases, resource consent requirements under the Resource Management Act 1991. It does not suspend or override the RMA, district plan rules, or Auckland Unitary Plan provisions. Those frameworks remain fully in force. The exemption operates within them — meaning that if your district plan, Unitary Plan zone, or a restrictive covenant on your title prohibits a minor dwelling, the national exemption does not override that prohibition. Every site must be assessed against the applicable rules before work begins.

How do I build a granny flat in South Auckland? Step-by-step process

1. Check your title and LIM. Your lawyer reviews your Record of Title for restrictive covenants, flood overlays, and Auckland Unitary Plan zoning, and your Land Information Memorandum (LIM) for council records including any notices, consents, or hazard overlays registered against the property. One to three days. Do this before spending anything on design.
2. Apply for a Project Information Memorandum (PIM). Submit Form 2AA to Auckland Council. Confirms site overlays, hazards, servicing requirements, and development contributions. Allow two to four weeks. Building cannot start before the PIM is received.
3. Engage your Licensed Building Practitioners. Select an LBP designer and LBP builder. All restricted building work must be carried out or supervised by LBPs. Keep their Records of Work throughout the build.
4. Build the dwelling. Work must be completed within two years of the PIM being issued. Maintain compliance documentation as work progresses.
5. Notify Auckland Council on completion. Submit all compliance documentation within 20 working days of completing the build. This includes final plans, Records of Work, and certifications from your plumber, drainlayer, and electrician.
6. Pay development contributions. You will still be required to pay development contributions if Auckland Council considers the granny flat will create increased demand on public infrastructure. Section 36(2A) of The Building Act allows Auckland Council to assess and charge contributions at the PIM stage. Approximately $20,000 in most established South Auckland suburbs. Up to $48,000 in high-growth areas such as Drury. However, Council must still consider whether the development contribution charged is proportionate to the nature and scale of the granny flat.

South Auckland: What you need to check before you start

South Auckland properties carry specific legal risks. Rice Craig regularly advises homeowners across Papakura, Manurewa, Manukau, Papatoetoe, and Pukekohe on the following local considerations.

Consent-free vs standard building consent: Which pathway is right for you?

Why is legal advice the essential first step for a granny flat project?

The 2026 granny flat exemption operates within a framework of existing law that remains fully in force. Your title may carry a restrictive covenant that overrides the exemption entirely. Your property may be a cross-lease or unit title with consent requirements that are entirely separate from building law. Your site may sit within a flood overlay, a hazard zone, or an Unitary Plan zone that changes what is and is not permitted. None of these are visible without a title and LIM review.

The exemption saves up to $5,650 in consent fees and up to 14 weeks in timeline. A restrictive covenant discovered after design fees have been committed, or a title defect created by building without Body Corporate or cross-lease consent, can cost significantly more than both.

For all of these reasons, legal advice is not an optional extra at the start of a granny flat project. It is the first step, the one that determines whether every subsequent step is being taken on solid legal ground.

Frequently Asked Questions

Do I need a lawyer to build a granny flat under the 2026 exemption?

You are not legally required to engage a lawyer to build. However, a lawyer's title review is the only reliable way to identify restrictive covenants, cross-lease obligations, and title encumbrances that could block your project or invalidate your build after completion. Rice Craig recommends a title review before committing to any design fees.

Can I build a granny flat on a unit title property?

Unit title properties are subject to Body Corporate rules under the Unit Titles Act 2010, which may prohibit new structures or require formal Body Corporate approval before any build proceeds. The 2026 national exemption does not override Body Corporate rules. Before committing to any design fees on a unit title property, confirm the Body Corporate rules and seek written approval from the Body Corporate if required. Rice Craig advises unit title owners to resolve this before design work begins.

Can I rent out my consent-exempt granny flat?

Yes, provided the dwelling complies with the Residential Tenancies Act 1986 and meets the Healthy Homes Standards (insulation, heating, ventilation, moisture, and drainage requirements). The consent exemption does not reduce your obligations as a landlord.

My granny flat design is 67 square metres. Does the 2026 consent exemption apply?

Not automatically. While the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025 sets the national exemption limit at 70 square metres, the Auckland Unitary Plan caps minor dwellings at 65 square metres in most residential zones. A dwelling between 66 and 70 square metres sits in a gap where the building consent exemption applies nationally but a resource consent may still be required under the Unitary Plan.

This means you could be exempt from building consent but still need resource consent from Auckland Council before construction begins. The two frameworks operate independently, and both must be satisfied for your build to proceed without consent under either pathway.

Before finalising any design above 65 square metres, your lawyer should confirm which Unitary Plan zone applies to your specific site and whether a resource consent is required. Committing to a design in this size range without that check is a common and avoidable mistake.

Will Auckland Council charge development contributions even if I do not need a building consent?

Yes. Auckland Council assesses development contributions at the PIM stage. The charge applies because you are creating a new household unit that generates demand on public infrastructure. A consent-free build does not mean a contributions-free build.

What happens if I build the granny flat without getting a PIM first?

Starting construction before the PIM is issued means you are not using the exemption pathway and will be in breach of the Building Act. You would need to apply for a standard building consent retrospectively, which is a costly and slow process. Always obtain the PIM before any on-site work begins.

Can I build a granny flat on a cross-lease or unit title property in South Auckland?

Possibly, but you will almost certainly need written consent from all other owners on the cross-lease or unit title property before adding any new structure. Without that consent, the new dwelling creates a title defect that could prevent you from selling or refinancing. Rice Craig advises cross-lease or unit title property owners to resolve this before design work begins.

Is the exemption being expanded further in 2026?

Yes. As of April 2026, the Government has confirmed further changes expected by Order in Council in Q3 2026. These will allow consent-exempt granny flats to be built off-site before the PIM is issued, and will expand the exemption to include Structural Insulated Panels with a CodeMark certificate.

This article is intended for general information purposes only and does not constitute legal advice. For advice specific to your circumstances, please contact the team at Rice Craig.