Granny Flats & the New Consent Rules: What You Really Need to Know

You’ve probably seen the headlines lately: “From 2026 you can build a granny flat without a consent!” Sounds like you can just grab a hammer, call your uncle, and start building next weekend, right?

Not quite.

Not requiring a ‘building consent’ is only one part of the process of building a granny flat. You will still need to notify council via a PIM - Property Information Memorandum, make sure the zoning rules allow for it, and pay development contributions as the new dwelling will be using council resources eg wastewater and storm water facilities.

The Good News

From early 2026, you might be able to build a small stand alone dwelling (aka “granny flat”) up to 70 m² without a building consent if you meet all the conditions. This is part of a government move to make housing quicker and cheaper to build. That means:

● Less paperwork

● Lower costs (no building consent fees)

● Faster start to your project

BUT, and it’s a big but, this only takes away the building consent part of the process.

Building Consent vs Resource Consent

Here’s the bit most people are missing:

Building Consent Resource Consent

✅ How it’s built: safety, structure, ✅ Where it’s built: zoning, boundaries, height

plumbing, drainage, insulation limits, heritage, flood risk

✅ Checked against the Building Code ✅ Checked against your District Plan

You Still Need to Tell the Council

Even if you don’t need a building consent, you’ll still have to:

1. Apply for a PIM (Project Information Memorandum) before you start - so council can check your site, zoning, and confirm if your plan fits the exemption.

2. Notify them when it’s finished. Pay development contributions. This is money paid to the council to support local infrastructure), and it will still apply. These are collected through the PIM process.

Hamilton and Waikato Rules Right Now

Local rules aren’t changing overnight - and the new national rules won’t override everything in one go. Here’s a quick summary:

Hamilton General Residential Zone

Can often add a granny flat (called an “ancillary dwelling”) up to 60 m² without resource consent if your section is at least 600 m² and you meet all development standards (setbacks, height, site coverage).

High-Density Residential Zone

Focus is on multi-unit/attached housing — standalone granny flats often aren’t a permitted activity here. You’ll likely need a resource consent.

● Large Lot / Rural Residential / Rural

Often allows a second dwelling, but may have minimum lot sizes (e.g., 5,000m²) and stricter setback rules.

● Heritage/Special Character Areas

Even a small new building may need resource consent to protect the area’s character.

What About Section Size?

The new building consent exemption doesn’t care how big your section is.

But… your district plan might.

Things that can trip you up:

● Minimum lot size rules for extra dwellings

● Site coverage limits (how much of your land can be covered by buildings)

● Setback requirements (distance from boundaries)

The Bottom Line

If your property is in a zone that already allows a second dwelling as a permitted activity, then this change is fantastic news.

If your property is in a zone that doesn’t allow a second dwelling, you would need a resource consent to be able to build.

Sources & Further Reading

I’ve fact-checked this with:

MBIE — Granny Flat Building Consent Exemption

Waikato Real Estate — Minor Dwelling Case Study

TradeTrack NZ — Granny Flat Rules

BCD Group — Legislative Changes

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