There’s been huge interest this year around the Government’s new “Granny Flat” legislation, and for good reason. The new rules are designed to make it easier and faster for Kiwis to build small, standalone homes on their own property.

Here’s what’s changing and why it matters...

What’s Happening?

On Friday, 24th October 2025, the Government officially passed the Building and Construction (Small Stand-alone Dwellings) Amendment Bill, allowing certain granny flats (up to 70m²) to be built without building or resource consent.

The law passed its third and final reading in Parliament and is set to come into effect early next year (2026) - one of the biggest shifts in residential building rules in decades.

What is a Granny Flat or Minor Dwelling?

A Granny Flat (also known as a minor dwelling) is a small, secondary home built on a property that already has a legal primary residence. It sits on the same site as the main house and is designed to provide independent living for family or household members, such as parents, adult children, or relatives who want to live nearby while maintaining their own privacy.

These homes are considered secondary dwellings, meaning they share the same land title and ownership as the main house. They are not separate, standalone properties with their own titles, rates, or ownership structures; they form part of the same residential lot. In other words, you can’t sell the granny flat separately or treat it as a completely independent property.

The intent behind the new law is clear: to make it easier for Kiwis to create flexible, multi-generational living options on their existing land, without unnecessary red tape or long consent processes. It’s about improving housing supply and affordability while keeping every build fully compliant with the New Zealand Building Code for safety, quality, and long-term performance.

The purpose of the new law is straightforward - to give Kiwis more flexible, multi-generational living options without adding unnecessary complexity.

What You’ll Be Able to Build:

The new exemption will apply to small, single-storey, standalone dwellings — often referred to as granny flats or minor dwellings — as long as they meet a few key requirements:

• Maximum floor area of 70m²
• Single-storey only
• Built on a code-compliant foundation, such as timber or screw piles
• Constructed using lightweight materials such as timber, steel framing, or Structural Insulated Panels (SIPs) — see MBIE’s definition here: Lightweight/low mass wall systems
• Includes rigid plumbing - no macerator pumps or internal holding tanks
• All plumbing, gas, and electrical work must be completed by licensed tradespeople
• Work must be signed off by a Licensed Building Practitioner (LBP)
• The property owner must still apply for a Project Information Memorandum (PIM) with the council before building (HouseMe can manage this on behalf) 

If any of these criteria aren’t met, a full building consent will still be required.

What’s Not Included:

While the new rules open up exciting opportunities for homeowners, they don’t apply to every type of small dwelling.

Here’s what doesn’t qualify under the new Granny Flat legislation:

• Tiny Homes on Wheels — any structure built on a trailer, chassis, or movable base. These are typically registered as vehicles/caravans, not buildings, and fall completely outside the Building Code. The wheels exist to avoid the need for building consents and code compliance, which is one component this legislation seeks to address.
• Container Homes and Imported Expandable Houses — many of these do not meet New Zealand’s Building Code and lack proper engineering documentation, certification, or quality assurance. If they can’t demonstrate compliance or provide full documentation, they won’t qualify under the exemption.
• Complex-Shaped or Two-Storey Homes — the exemption only applies to simple, single-storey dwellings that meet strict design parameters. Anything beyond that will still require a full consent.
• Uncertified DIY Kitsets and Foldable Houses — unless they are designed, engineered, and built to meet the NZ Building Code and signed off by a Licensed Building Practitioner, they’re excluded.
   

To qualify as a granny flat under the new law, the dwelling must be:

• Permanently fixed to the land, not movable or on wheels
• Built using compliant materials and certified systems
• Constructed and signed off by licensed professionals
• Issued with Code Compliance documentation once complete

The Government has made its position clear: this exemption is for legitimate small homes built to the same safety and quality standards as any other dwelling in New Zealand.

In short, if it’s on wheels, a trailer, or arrives folded in a shipping container, it won’t qualify.

Why "Movable Homes" Don’t Qualify 

Let’s clear up one of the biggest misconceptions in the market. The cold, hard facts are that tiny homes on wheels, or caravans, do not qualify under the new Granny Flat laws.

Here’s why.

Under Clause A2 – Interpretation of the New Zealand Building Code, a building is defined as:

“any temporary or permanent, movable or immovable structure (including any structure intended for occupation by people…).”

But the Building Act 2004, which sets the legal framework for what’s considered a “building”, draws a clear line.
Section 8(1)(b)(iii) explicitly states that a vehicle or motor vehicle is not a building.

That means if your small home is:

• built on a trailer,
• registered as a vehicle, and
• designed to move from site to site,

Then it’s legally a vehicle, not a house.

Because it’s classed as a vehicle, it sits outside the Building Code entirely. It’s not required to meet Code, and it usually can’t. That means no verified structural standards, no certified weatherproofing, and no Code Compliance Certificate (CCC).

And without a CCC, it’s not a legal dwelling under New Zealand law. That’s the critical part. 

The new Granny Flat legislation is built entirely around Code-compliant, permanent dwellings — homes that are fixed to the land, built by Licensed Building Practitioners, and capable of being certified under the Building Code.

The exemption applies to dwellings that are:

• permanently installed on compliant foundations (timber piles, concrete pads, or screw piles),
• fully engineered and signed off, and
• built to Code, using certified materials and processes.

Tiny homes on wheels don’t meet those criteria, not even close. They’re designed specifically to avoid the consenting process that the new law is based on.

So, while they might look like small houses, legally, they are vehicles. And vehicles cannot be classed as dwellings or qualify under the Granny Flat exemption — no matter how they’re marketed. We didn't write the law, so don't shoot the messenger!

A CCC remains the gold standard of proof. It shows your home is legal, insurable, mortgage-worthy, and built to last. It’s what separates a genuine, code-compliant house from something that just looks like one.

If it’s on wheels, or a trailer, it’s a vehicle. If it’s on foundations and issued with a CCC, it’s a home. That's what the law says.

What You’ll Still Need to Do:

While the process will be more straightforward, there are still a few steps to follow, and HouseMe will be able to support you with all of the following:

1.  Check your property’s zoning and make sure it meets setback and boundary rules.
2. Apply for a PIM before building.
3. Build to code using qualified professionals.
4. Submit your documents (plans, records of work, compliance certificates) once the build is complete.

Even without consent, your new home must still meet the New Zealand Building Code.
That’s what ensures safety, quality, and long-term value.

Why This Is Great News for HouseMe Customers?

This is where HouseMe stands well ahead of the curve.

Every HouseMe home is built using Codemark-certified or code-compliant materials, including our New Zealand-made Colorsteel EPS & PIR construction system, which MBIE formally recognises under the Building Code.

That means our homes already meet (and exceed) the new legal requirements. They’re factory-built, precision-engineered, and come standard with a Code Compliance Certificate (CCC).

When the new law takes effect, HouseMe homes will automatically qualify under the exemption rules - no redesigns, no rework, and no uncertainty.

The Bottom Line...

• You’ll soon be able to build a high-quality, fully-compliant granny flat up to 70m² without building or resource consent.
• You’ll still need to meet the Building Code and follow the PIM process.
• Granny flats must be secondary homes
• The new law is expected to start in early 2026 (exact date to be announced).
• HouseMe homes already meet every requirement with certified materials, proven compliance, and guaranteed quality.

Want to get ahead of the change?

📞 Call 0800 468 736 
📍 Visit one of our show homes: houseme.co.nz/show-homes
💬 Or reach out online: houseme.co.nz/contact