New Zealand is taking a significant step towards addressing its housing crisis with the introduction of a groundbreaking policy allowing the construction of 60 square metre dwellings, often referred to as “Granny Flats,” without the need for building consents. This new “Granny Flat Rule” aims to simplify the building process, reduce costs, and increase the availability of affordable housing across the country. Here’s what you need to know about this exciting development. 

The New Policy: An Overview 

On 17 June 2024, Acting Prime Minister Winston Peters and Housing Minister Chris Bishop announced the government’s intention to streamline the building process for small dwellings, commonly known as granny flats. This policy is part of a broader effort to address the high costs and inefficiencies in the current housing market, which disproportionately affect Māori, Pasifika, people with disabilities, and seniors​ (The Beehive)​​ (RNZ)​. 

Key Guidelines and Implementation 

The new regulations propose the following key points: 

• Size Limit: Dwellings up to 60 square metres are eligible. 

• Zones: Applicable in rural and residential zones, with potential consideration for mixed-use zones. 

• Building Requirements: These structures can be no more than one storey and must include interconnected smoke alarms and adhere to distance requirements from property boundaries to prevent fire spread​ (RNZ)​. 

• Professional Supervision: All construction work must be conducted or supervised by licensed professionals to ensure compliance with the Building Code, eliminating the need for an engineer’s report, which previously added to costs​ (RNZ)​. 

• Cost Savings: The elimination of the need for building consents is expected to save builders and homeowners significant amounts, potentially up to $6,500 per project​ (The Beehive)​. 

Timeline and Consultation 

The consultation period for this policy started on 17 June 2024, and will run until 12 August 2024. This allows stakeholders and the public to provide feedback on the proposed changes. The final policy decisions are anticipated to be made later in 2024, with the law expected to come into effect by mid-2025​ (interest.co.nz)​​ (RNZ)​. 

Benefits and Impact 

This policy aims to: 

• Increase Housing Supply: By making it easier to build small dwellings, the policy will help increase the housing stock quickly and affordably. 

• Affordability: Reduced regulatory red tape and associated costs will make housing more accessible to a wider range of people, especially those most affected by high housing costs. 

• Flexibility for Families: Granny flats offer a versatile living solution for multi-generational families, providing independent living spaces for seniors, young adults, or family members needing extra support​ (The Beehive)​​(RNZ)​. 

Considering This Option? Let Us Help! 

If you are considering this option for yourself and would like us to estimate the costs of a project like this ahead of the official launch of this policy, get in touch with NAS Construction. As experienced Tauranga builders with a reputation for high-quality work, we can assist you in understanding the potential savings and planning your project to ensure it meets the new guidelines. Our team is ready to provide you with the expertise and support needed to make your building project a success. 

Check out our recent project, A Golfer’s Dream, which, although closer to 90sqm, showcases the high-quality craftsmanship and beautiful finishings we can achieve. Imagine a 60sqm variation of this project—an inviting and spacious home made possible through clever draftsmanship and design. A 60sqm home can feel open, large, and be a lovely place to call home. 

For more details, you can visit the official announcement and the RNZ News coverage.  

By keeping abreast of these changes, NAS Construction can continue to provide top-tier services and adapt to the evolving needs of New Zealand’s housing market. Contact us today to discuss your project and how we can help you take advantage of these new opportunities.