In recent years, New Zealand has faced significant challenges in the housing sector, with rising costs and a limited supply of affordable homes. The government has recognised the need for reform, particularly in the development of small, self-contained minor dwellings, commonly known as Granny Flats. These reforms are not just about easing the burden on homeowners—they represent a transformative opportunity for companies like HouseMe and prospective homeowners across the country. In this blog, we delve into the exciting changes brought by the recent Granny Flat regulation reform and what it means for you.

Understanding the Changes: A New Dawn for Granny Flats

The New Zealand Government has introduced significant reforms under both the Building Act and the Resource Management Act (RMA) to simplify the construction and consent processes for Granny Flats, also referred to as minor residential units (MRUs). Here’s a breakdown of what’s new:

Building Act Reform: Simplifying the Process

Under the revised Building Act, a new schedule has been introduced that provides a building consent exemption for standalone dwellings up to 60 square meters. This exemption is designed to alleviate the burdensome regulatory process that often accompanies small construction projects. Here are the key aspects of this reform:

Exemption from Building Consent: Homeowners can now build standalone Granny Flats up to 60 square meters without the need for a traditional building consent. This reduction in red tape is a major win, saving both time and money.

Mandatory Compliance with the Building Code – CCC’s: Even without the need for a full building consent, the construction must still adhere to New Zealand’s Building Code. This ensures that the safety and quality of the homes are not compromised.

Licensed Building Practitioners (LBPs) Requirement: The work must be completed or supervised by qualified professionals, such as LBPs. This requirement maintains a high standard of craftsmanship, giving homeowners peace of mind.

Notification to Local Councils: Upon completion of the work, homeowners are required to notify their local council. This step is crucial for ensuring that new constructions are recorded for infrastructure planning and property valuation.

Resource Management Act (RMA) Reform: National Consistency

The reforms under the RMA focus on creating a nationally consistent framework for the construction of MRUs (Granny Flats). Previously, the rules and standards for building Granny Flats varied significantly across different regions, leading to confusion and delays. The new changes address this by:

National Environmental Standard (NES): The introduction of an NES for MRUs (Granny Flats) establishes a consistent set of permitted activity standards across the country. This means that the rules for building Granny Flats are now standardised, reducing regional discrepancies.

Permitted Activity Standards: In most residential and rural zones, MRUs (Granny Flats) can now be built without needing resource consent, provided they meet the national standards. This streamlines the process, making it easier for homeowners to add a Granny Flat to their property.

Focus on Single-Storey Dwellings: The NES is particularly designed to support the construction of single-storey, self-contained residential units, which are ideal for small families, elderly parents, or as rental properties.

The Goals of the Reform: Building a Better Housing Future

The Granny Flat regulation reform is a cornerstone of the government’s broader strategy to address New Zealand’s housing crisis. The goals of this reform are multi-faceted and aim to bring about lasting positive changes in the housing landscape:

1. Increasing Housing Affordability

New Zealand’s housing affordability has been a pressing issue, with home ownership rates declining and a significant portion of income being spent on housing costs. By reducing the regulatory burden and associated costs of building small homes, these reforms make it more affordable for homeowners to expand their properties. This is particularly beneficial for those looking to add an extra living space for family members or as an income-generating rental unit.

2. Supporting Intergenerational Living

One of the most profound social benefits of these reforms is their support for intergenerational living. As families evolve, the need for flexible living arrangements increases. Granny Flats provide an ideal solution, allowing elderly parents to live close to their children and grandchildren while maintaining their independence. Similarly, young adults can have their own space while saving for their first home. These reforms make it easier to accommodate these diverse living needs within a single property.

3. Streamlining the Building Process

The traditional building consent process has often been seen as a significant hurdle, adding both time and cost to construction projects. By introducing exemptions for small dwellings and setting clear, consistent standards, the reforms aim to make the building process more straightforward. This not only benefits homeowners but also supports the construction industry by reducing delays and encouraging more projects to commence.

What do these Changes mean for HouseMe Customers?

The recent reforms are set to revolutionise the way New Zealanders approach building Granny Flats. At HouseMe, we’re excited about the possibilities these changes bring and how they align with our mission to provide high-quality, affordable homes. Here’s how our customers stand to benefit:

1. A Faster, Easier Building Experience

Thanks to the removal of the need for a traditional building consent for units up to 60 square meters, HouseMe customers can now enjoy a much faster building process. This means less waiting time and lower costs associated with obtaining site-related consents. Our team at HouseMe is fully equipped to guide you through these streamlined processes, ensuring that your new ‘Granny Flat’ meets all the necessary standards.

2. Greater Flexibility and Customisation

With the ability to build up to 60 square meters, homeowners have more flexibility in designing their Granny Flat. Whether you’re looking for a cosy retreat for aging parents, a space for young adults, or a rental unit to generate extra income, the options are now more varied and accessible. At HouseMe, we offer a range of designs that can be tailored to your specific needs, all while complying with the new regulations.

3. Enhanced Financial Accessibility

The cost savings from the reduced regulatory requirements are significant, making homeownership more accessible to a broader range of New Zealanders. For those who have been priced out of the market, the ability to add a Granny Flat to an existing property could be the key to achieving their homeownership goals. HouseMe’s affordable pricing models, combined with these regulatory changes, mean that more people can now afford to invest in their future.

4. The Million-Dollar Question – WHEN?

The new Granny Flat regulations are expected to come into effect by mid-2025. The legislative changes associated with these reforms are currently in the consultation phase, with final policy decisions anticipated later this year. Once these decisions are made, the necessary legislative amendments will be implemented, aiming for the new laws to be fully operational by mid-2025.

Conclusion: Seizing the Opportunity

The Granny Flat regulation reforms represent a major shift in New Zealand’s housing policy, with the potential to significantly impact the lives of homeowners across the country. At HouseMe, we’re ready to help you navigate these changes and take full advantage of the new opportunities they present. Whether you’re looking to create a space for family, generate rental income, or simply add value to your property, now is the perfect time to explore the possibilities.

Contact HouseMe today to learn more about how we can help you build a code-compliant, high-quality Granny Flat that meets your needs and takes full advantage of these exciting new regulations.