27 June 2024

Simplifying “Granny Flats”: Central Government Seeking Feedback to Shape New Housing Legislation

The Central Government has released a discussion document proposing reforms to the rules for building small structures, commonly known as “granny flats.”  The Ministry of Business, Innovation and Employment and the Ministry for the Environment are seeking public feedback on the proposal, which aims to streamline the construction process for these dwellings.

This initiative forms part of the Government’s promise to require councils to permit the construction of small dwellings (60 square metres or less) in rural and residential zones without the need for resource consent.  The pānui sets out the proposal, the consultation process, and the potential impacts of these reforms.

The proposed changes aim to address the country’s housing crisis by facilitating the increased development of papakāinga.  These changes would provide hapū, iwi, and whānau with opportunities to quickly develop papakāinga on their land, potentially offering a practical solution to the widespread housing issues affecting many individuals across the nation.

What’s being proposed?

The Government plans to ease restrictions under local plans and relax building code requirements to make it significantly easier for New Zealanders to build granny flats.  They have stated that this effort is designed to increase the supply of affordable homes and provide alternative housing options for the aging population.

The proposal includes amending the Building Act 2004 and the Resource Management Act 1991 (RMA), as follows:

• Building Act 2004 Changes:  While all construction must comply with the New Zealand Building Code, the new rules would exempt granny flats from needing building consent.  The Government seek feedback on the benefits, costs, and risks, as well as alternative ideas to save time and money.
• RMA Changes: The proposed changes aim to establish a consistent nationwide approach to resource consents, including the introduction of a National Environment Standard to allow granny flats in both rural and residential zones without requiring resource consent.

What’s the risks?

While the proposal has been generally well-received, particularly among tiny home advocates, many emphasise the importance of balancing speed and quality in construction.  The Government have acknowledged the need to ensure safe, healthy, and durable homes while facilitating quick and cost-effective building processes.  Some of the key risks include:

• A significant increase in small, randomly placed dwellings across the country.
• Possible rushed construction leading to substandard buildings and health and safety risks.
• Overlooking important checks and balances in the building sector that prevent health and safety issues.

How to submit feedback

You can provide feedback by completing an online survey or submitting a form via email to grannyflats@mbie.govt.nz or by mail to the Ministry of Business, Innovation and Employment.  Feedback is sought on:

• The benefits and risks of the proposal.
• Effects on the Resource Management system.
• Local Government Infrastructure Funding.
• Māori land, papakāinga, and kaumātua housing.

Submissions are due by 5pm, Monday 12 August 2024.  The Government will review all feedback, and changes to the legislation are aimed to be implemented by mid-2025.

If you want to learn more, you can access the Ministry of Business, Innovation and Employment’s webpage at the following link.

Get in touch

Our Te Taiao Team is able to assist with all resource management-related pātai that you may have.  We are also available to discuss any resource consent matters and any other bespoke environmental queries.

Kylee is a Director in our Te Taiao Team and can be contacted on 07 958 7424.