Building a granny flat without building consent

A retired couple were downsizing and their daughter suggested they could build a granny flat on the back of her property.  They took advice from a builder who suggested they might be able to wait to begin the build until 2026 as a significant law change was on the way.

Changes to the Building Act and Resource Management Act

Changes to the Building Act 2004 and the Resource Management Act 1991 are expected to be in force in early 2026, that will make it easier for more minor building works to be carried out, such as building a “granny” flat or a shed on your property.

The welcome changes will record that property owners do not have to obtain a building consent from their local Council for building a granny flat or large shed that is up to 70m²  in size, provided it is a simple design and meets the Building Code.

There is still a requirement for the home-owner to notify the local Council prior to building and notify the Council upon completion.  The building must be constructed by a qualified licenced builder and in accordance with the Building Code and safety standards; and the building must be at least 2m from the boundary or from another building.

Sheds that are between 10m²  and 30 m² will also be exempt from requiring building consents and these structures need to be at least 1m from the boundary of the property.

Smaller sheds up to 10m² in size may be built right up to the boundary.

When constructing sheds you also need to notify the Council and advise when the work is completed.

If you are looking to build a granny flat at your property prior to the new legislation being in force, you will need to do so in accordance with the current legislation i.e. you will need to obtain a building consent, and potentially a resource consent, from your local Council. 

Building Act warranties

Protection under the Building Act will apply to these smaller builds, including a requirement for a written contract between the homeowner and the builder for projects over the value of $30,000.  Also, the 12-month period for the repair of defects (from completion of the build) and the legislative 10-year implied warranty period will apply to granny flats.

Be careful of title issues

When building any structures on your property you will need to take into consideration any land covenants or other building restrictions that are on your title.  Many newer subdivisions have restrictive covenants on titles preventing any additional structures or relocatable dwellings being placed on them. 

Title issues are not matters that your builder or the Council will be involved in. You should have received a copy of your title and a search of any covenants when you purchased your property, otherwise your lawyer is able to search the title for you if you cannot locate it.

If you are planning a small build at your property, it may be more straight-forward and cost effective if you wait until the new legislation is enacted in 2026.  

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.