There’s been a pretty handy change for homeowners thinking about adding a granny flat, and it could save you time, money, and a whole lot of admin.
From 15 January, you can now build a standalone granny flat of up to 70 square meters without needing building or resource consent, as long as it meets the Building Code and the work is carried out by authorised professionals.
This change came through updates to the Building Act and new national rules under the Resource Management Act, all aimed at making it easier for families to create simple, affordable housing options
Why this is a big deal
The Government estimates this change could save homeowners up to $5,650 in consent costs and cut build time by as much as 14 weeks. That’s a big win if you’re trying to get something built without delays or surprise costs.
It’s also expected to help increase housing supply over time, with thousands of granny flats likely to be built over the next decade, great for families, multi-generational living, and even rental options.
MBIE has also released guidance and templates to help homeowners and builders understand how the exemption works, so there’s a lot more clarity than there used to be.
How people are paying for granny flats
Even though the consent process is simpler, the finance side still needs a bit of planning. Common ways people fund a granny flat include:
- Using home equity — topping up your loan and spreading the cost over time
- Refinancing — releasing equity at competitive rates
- Savings or staged builds — using cash where possible to reduce borrowing
A granny flat can be a great option for family support, future-proofing, or rental income, but only if the numbers stack up from the start so make sure you crunch all the numbers first!
If you’re thinking about building one and want to make sure the finance is set up properly, I’m always happy to talk it through and help you explore your options.