Granny Flats Made Easy: What the 2026 Law Changes Mean for You (and How Ford Studio Can Help)

New Zealand is on the cusp of a major shift in how we approach small standalone dwellings – commonly referred to as "granny flats." In an effort to boost affordable housing options and adapt to changing living needs, the Government is introducing changes that will make it easier for homeowners to build these compact homes on properties with existing dwellings.

At Ford Studio, we're closely following these developments and are ready to help our clients make the most of the opportunities ahead.

What’s Changing?

After receiving nearly 2,000 public submissions, the Ministry of Business, Innovation and Employment (MBIE), in conjunction with the Ministry for the Environment (MfE), has proposed a new building consent exemption for granny flats – with final legislation expected in 2025 and implementation set for early 2026.

Under the proposed changes:

  • Standalone dwellings up to 70m² may be built without needing a building consent, provided they:

    • Meet a simple design threshold and fully comply with the New Zealand Building Code.

    • Are built or supervised by licensed building professionals.

    • Are notified to your local council before and after construction.

  • A new National Environmental Standard (NES) will also be introduced to streamline resource consent requirements, allowing granny flats in most rural and residential zones without a resource consent.

Why These Changes Matter

The Government's goal is to improve access to safe, durable, and affordable homes, and granny flats are seen as a key solution. They’re ideal for:

  • Multi-generational living

  • Supplementary rental income

  • Downsizing while staying on the same property

  • Supporting older family members or young adults

By removing the need for building and resource consents in many cases, the changes aim to save time and money, while still managing the risks around quality, natural hazards, and environmental impact.

However, all building work must still comply with the Building Code, and councils will still charge infrastructure contributions via the PIM (Project Information Memorandum) process to cover local services.

How Ford Studio Can Help

While the changes will simplify the process on paper, the reality of navigating compliance, design requirements, and construction logistics can still be overwhelming. That’s where we come in.

At Ford Studio, we offer:

  • Site-Specific Advice – We'll assess your property to determine whether it qualifies under the new exemptions and identify any site-specific challenges like natural hazards or boundary constraints.

  • Concept to Completion Design – We will design your granny flat to meet both your personal needs and the criteria required under the exemption, ensuring it remains compliant, cost-effective and beautifully resolved.

  • Licensed Professionals – All work we undertake or supervise is carried out by licensed and experienced practitioners – a key requirement of the upcoming exemption.

  • Resource and Building Code Navigation – Even if consents aren’t required, you’ll still need to notify council, manage infrastructure charges, and adhere to design standards. We’ll take care of all that for you.

  • Custom Solutions – Whether you’re after a modern rental unit, a backyard retreat, or a flexible multigenerational dwelling, we tailor each project to your lifestyle and site.

Thinking Ahead

These changes are a big step forward in increasing housing choice across the country. But just like any development, the devil is in the details. As we await final implementation in early 2026, Ford Studio is already helping clients plan ahead to ensure they’re ready to act as soon as the green light is given.

Interested in building a granny flat?
Let’s chat. Whether you're ready to start planning now or just want to understand your options, we’re here to guide you every step of the way.

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