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Granny flat rules in New Zealand (2026): the 70 m² exemption
Since 15 January 2026, a small stand-alone home of up to 70 m² can be built without a building consent, but the Building Code still applies in full. Here is what the exemption requires, who does what, and what to check when the granny flat is built in a factory overseas.
What changed in 2026?
Two sets of rules came into force on 15 January 2026:
- Building: the granny flat exemption in the Building Act 2004 (section 42B and Schedule 1A). Some conditions were amended on 8 October 2026 by the Building (Exempt Small Stand-alone Dwellings) Order 2026: a home can now be built with a certified composite structural building product instead of a steel or timber frame, and on-site water, wastewater and stormwater systems have different requirements depending on whether they are new or existing.
- Planning: a national environmental standard for detached minor residential units. It allows one granny flat per site without resource consent in residential, rural, mixed use and Māori purpose zones, if its own standards are met and there is a principal home on the site. Our guide to minor dwellings in Auckland explains how it sits with the Auckland Unitary Plan.
The two are separate, and new planning laws passed in 2026 will replace the Resource Management Act over several years: check the current rules with your council.
Does my granny flat qualify?
| Condition | Rule |
|---|---|
| Type | A new, stand-alone, single-storey home with its own kitchen, and no mezzanine |
| Size | 70 m² or less, measured between the inside faces of the external walls |
| Height | Up to 4 m above the floor, with the floor no more than 1 m above the ground |
| Distance | At least 2 m from any boundary and any other residential building |
| Construction | Lightweight steel or timber frame, or a certified composite structural product; roof cladding up to 20 kg/m², wall cladding up to 220 kg/m² |
| Services | Plumbing and drainage to set acceptable solutions, no more than 30 fixture units, no pumped systems; its own point of supply for electricity; electric or gas heating only |
| Bathroom | No level-entry shower that needs a waterproof membrane |
| Land | Natural hazards adequately provided for; not built across the boundary between two lots |
If any condition is not met, the work is not exempt and a building consent is needed. Our Yard 37 has 35.2 m² of floor area inside the walls, well under the 70 m² limit, and our Yard 57 about 54.3 m². For an expandable unit like ours, see what the rules require of an expandable granny flat.
The conditions are set out in section 42B and Schedule 1A of the Building Act 2004, and explained in the MBIE granny flats exemption guidance. The planning standard is on the Ministry for the Environment website.
What is a PIM, and what does it cost?
A project information memorandum (PIM) is your council's information about your site: natural hazards, services and any development contributions. Every exempt granny flat needs one, and no building work may start before it is issued. The council has 10 working days to issue it once your application is complete, and it lapses after two years if the work is not finished.
In April 2026, the Government announced that exempt granny flats would be able to be built off-site before the PIM. That change is in the Building Amendment Bill, which had its first reading on 2 July 2026, and it is not law yet. Under the Building Act as at 8 October 2026, no building work, including work in a factory, may start before the PIM is issued: the Act counts the manufacture of a modular component as building work.
The PIM rules also cover homes built in a factory and moved to their final site, so we start production only after your PIM is issued. Two questions are open with MBIE (asked on 23 October 2026): whether a home built overseas can use the exemption, and whether the Yard 37's bolted steel frame counts as a lightweight steel frame. Until MBIE answers in writing, we take no deposit for a project that relies on the exemption. If you do not want to wait, your project can go through a building consent instead: your quote then shows the consent fees and the extra time.
| Council | Fee |
|---|---|
| Auckland Council | $537 base fee, plus time if more work is needed |
| Wellington City Council | $704, plus a $178.50 lodgement fee |
| Christchurch City Council | $370 deposit, plus time |
| Tauranga City Council | $845 fixed fee |
Development contributions are charged on top of the PIM fee and can be much higher. Our turnkey price counts them at the amount for a typical Auckland suburb; your written quote uses the amount for your address. Our guide to granny flat costs in Auckland shows each charge.
Who does what?
| Step | Who |
|---|---|
| Design for your site, foundations, anchorage and certificate of work | A licensed designer, registered architect or chartered professional engineer |
| PIM application, then notice to the council after completion | You, as the owner, usually with your designer |
| Foundations and fixing the unit | A Licensed Building Practitioner |
| Plumbing and drainage | A registered plumber and a drainlayer |
| Assessment of wiring done overseas (record of assessment) | An electrical inspector |
| Electrical connection and certificates | A licensed electrician |
| Factory unit, delivery and document set | Lodgeyard |
On a Lodgeyard project, the designer, the LBP and the licensed trades are named in our quote and contract with you directly. There is no council design review or inspection under the exemption, so your designer's certification carries real weight. Within 20 working days of completion, you send the council the records of work, the electrical certificates, the final plans and the designer's certificate. Missing that deadline is an infringement offence: the council can issue an infringement notice with a $500 fee, and the fine is up to $1,000 if it goes to court.
Which Building Code rules matter most?
Structure, earthquakes and wind
Foundations follow the MBIE granny flat foundations guidance on good or suitable ground, or a specific engineering design elsewhere. Loads come from AS/NZS 1170 for wind and NZS 1170.5 for earthquakes, not from Australia's AS 4055, so an imported unit's anchorage is designed for your section.
Weathertightness
The standard acceptable solution for external moisture, E2/AS1, covers timber-framed buildings. A steel-framed unit with insulated panels shows compliance another way, which your designer documents.
Energy efficiency
| Element | Minimum |
|---|---|
| Roof | R2.6 |
| Walls | R1.0 |
| Floors other than slab-on-ground | R1.3 |
A whole-building calculation is also needed, and the previous edition can be used only until 26 November 2026 (H1/AS1, sixth edition). Many imported units have thin roof panels and uninsulated floors: check both first.
Importing a factory-built granny flat: what should I check?
- Asbestos: importing any product that contains asbestos is prohibited without an EPA permit, with no minimum threshold. Ask for test reports from an accredited laboratory, not a declaration.
- Biosecurity: MPI checks the container, which is unpacked at an approved transitional facility. Wood packaging must carry the ISPM 15 mark.
- Duty and GST: duty is 0% for goods of Chinese origin with a proof of origin under the free trade agreement, 5% otherwise. As the importer, you pay GST of 15% on the value plus freight and insurance, and levies of $118.44 plus GST per import entry.
- Electrical: wiring done overseas is assessed by a New Zealand electrical inspector, who issues a record of assessment before connection. As the importer, you sign a supplier declaration of conformity for the installation, with the declarations for each fitting (WorkSafe, imported buildings).
What are my rights?
A consumer has guarantees under the Consumer Guarantees Act 1993 that cannot be excluded: acceptable quality, fitness for purpose and match with the description. The Building Act also implies warranties into residential building work, and a defect notified within 12 months of completion must be remedied.
What does our price include?
Turnkey from NZD 170,000 for a Yard 37 on a standard metro Auckland section, GST included:
| The Yard 37, delivered to your section by truck and craneinvoiced by us | NZD 76,900 |
|---|---|
| GST and import chargespaid by you at the border, as the importer | aboutNZD 12,200 |
| Council and Watercare charges, typical Auckland suburbPIM, development contributions and Watercare growth charge, paid by you directly | aboutNZD 32,200 |
| Design, foundations, anchorage, expansion and connectionsby the designer, Licensed Building Practitioner and licensed trades named in your quote, under their own contracts with you | aboutNZD 48,700 |
| Turnkey price, GST included | NZD 170,000 |
Development contributions vary by address; your written quote uses yours. Your quote also confirms the electrical inspection before connection and, if your section needs one, a separate electricity connection.
A standard section is level and on good ground, outside natural hazard areas, with truck and crane access, the house services within 15 m and drainage by gravity. Metro Auckland means Auckland's urban area connected to Watercare's water and wastewater networks and reached by truck and crane from the mainland; islands such as Waiheke and Great Barrier, and rural areas, are priced in your quote.
What should I check before I order?
- Your PIM, and whether the planning rules allow a granny flat on your site.
- Your consent pathway: the exemption once MBIE has answered, or a building consent.
- The designer, LBP, plumber, drainlayer and electrician named in your quote: check their licences on the public registers (LBP register, Plumbers, Gasfitters and Drainlayers Board, Electrical Workers Registration Board).
- Truck and crane access to your section.
- Asbestos reports, the electrical dossier and the H1 specification, in writing.
- A written quote listing what is included, and the GST and import charges.
Frequently asked questions
Can I put a granny flat on any section?
Only one per site under the national planning standard, with a principal home on the site, and at least 2 m from boundaries and other homes under the building exemption. Your council's PIM tells you about hazards and services on your section.
Is a holiday park cabin covered?
No. The exemption is for a detached home. Cabins in a camping ground are treated differently under the Building Code and normally need a building consent: ask your council.
General information, based on official sources read in October 2026 and last updated on 26 October 2026. It does not replace advice from your designer, your council or a lawyer. Rules change: check the current version before you commit.