Granny Flat NZ 2026: No Consent Needed?
If you've been thinking about building a granny flat in NZ, 2026 is the year to do it - the rules have just changed significantly, and depending on your property, you might not need a building consent at all.
Max Style Managing Director Ramin Tavakoli sits down with architectural designer Darren Gubb from Gubb Design to unpack the new 2026 rules around building a minor dwelling (granny flat) in New Zealand - what's changed, what it costs, and what most people are still getting wrong.
Ramin Tavakoli has been working with Darren Gubb since around 2016-17. Together they’ve completed numerous projects – and right now, with everything happening around minor dwellings and the new no-consent rules, even experienced builders are finding it a grey area.
“Even as a building company, we don’t know actually what’s going on,” says Ramin. “It’s a big grey area.”
So they sat down to clear it up.
First Things First - What's Actually Changed?
Darren gets straight to it.
“You’ve got the difference between what’s politicised and what’s out there as advertising versus what the real little fish hooks are.”
There are two key areas under the new National Environmental Standard:
One deals with building consents – in certain conditions, you may not need one at all. The other deals with resource consents – again, if you comply with the conditions, you may not need one either.
“You’ve got to comply with both sets of conditions to ensure that you don’t need a building consent and you don’t need a resource consent,” Darren explains.
Resource Consent vs Building Consent - What's the Difference?
It’s a question a lot of homeowners ask, so Ramin puts it plainly.
“The resource consent deals with the permissions on the land – the land use,” says Darren. “The building consent deals with the building – the foundations, the flooring, the walls, the roof structure.”
So Where Do You Start?
If you’re a homeowner who knows nothing, where do you begin?
Darren walks through the process: you come to an architectural designer first. They analyse your site to make sure you can comply with all the rules, get a contract together, start the design process, and make sure the dwelling fits comfortably on the site – the right distances from existing buildings, the right yard setbacks, overall heights.
From there, a package of drawings goes into council for what’s called a Project Information Memorandum (PIM) – essentially a process where council reviews the proposal and checks whether something extra is needed, like a resource consent.
“They then write back to you as the homeowner to say whether it complies or not,” says Darren. “Sometimes it might catch a few things there that would otherwise require a resource consent. We then work together to find our way around it.”
Once that permission is granted, drawings are finalised, and then the build begins.
Ramin sums up how it typically works in practice with Max Style: “Customer comes to you, or to us as a building company. We do a site visit, give some idea of what needs to be done. Then we involve Darren, or Darren involves us. We go on site, see what’s the best option for that specific site. Then from there, you start with all the concept drawing, the research, due diligence. Once Council is happy and issues the consent, then we take over. We do the building – and we’re still working together.”
“The key word there is collaboration,” says Darren. “We’re always collaborating – the builder, the designer, and the homeowner – all working together to get this over the line.”
How Long Does It Take to Know if You Even Need Consent?
“In terms of getting to the point that you have some knowledge that it’s possible to put on a dwelling without a resource consent or a building consent, you’re probably really only looking at three or four hours worth of work,” says Darren.
The team has created a specific checklist to work through the conditions – doing due diligence upfront takes very little time to get a general read on whether it’s possible.
The Four Key Conditions
So what are the conditions that could mean you don’t need a full building consent?
Darren outlines the main ones:
1. Finished floor level must be less than one metre from the ground. “If you’re on quite sloped pieces of land, you really need to think about it. Flat land – great, it’s ideal.”
2. Maximum four metres from finished floor level to the very ridge – the very apex of the home. This also means no two-storey dwellings. No mezzanine. Always single level.
3. Minimum two metres away from any existing building.
4. Minimum two metres away from the legal boundary. Although, as Darren notes, “in that policy statement, they’ve essentially said that if the zoning is more lenient, you can potentially build closer to the boundary. So that’s something we’re using quite often at the moment – it really is a case by case scenario.”
Ramin’s quick summary: “If the land is flat, if you don’t go over four metres in height, and if you are two metres away from the fence and boundary – then that’s a good indication to start.”
“It’s a good indication to start,” confirms Darren. “And if you don’t have one of those requirements, maybe you can still tweak around it and check. It’s certainly a good enough piece of information to then contact us.”
Does a Granny Flat Have to Be for Family?
Not at all – that’s old thinking.
“In the old days, they called it a granny flat – you actually had to have a grandparent there that you were caring for to be allowed it,” says Ramin. “So you don’t need that anymore. It’s just actually a minor dwelling.”
Darren also draws a useful distinction between a minor dwelling and a granny flat.
A minor dwelling only exists in Auckland in a specific zoning called single housing zoning. It’s allowed up to 65 square metr
es measured from the outside.A granny flat – which is what most people are building under the new rules – is 70 square metres, measured to the internal lining.
“In reality it may be 73, 74, 75 square metres on the outside,” says Darren. “Do you have brick? That pushes it out more. So you start to get into the weeds a little bit with that conversation. But ultimately, it’s 70 square metres to the inside of the lining.”
What Can You Actually Fit in 70sqm?
More than you’d think.
“In that area, you can probably have two bedrooms, a living room, a kitchen, a bathroom – fully functional,” says Ramin.
What Type of Foundation Do You Need?
“It doesn’t matter, as long as it’s recognised under NZS 3604 as a simple way of constructing,” says Darren. “It’s really just down to the situation. In some situations you may be better off doing a concrete slab. In most situations, it would be on a timber floor. The one metre from the ground to the finished floor level is the most important bit to achieve.”
Can You Use Existing Designs to Save Money?
Yes – and this is where working with an experienced team pays off. Gubb Design currently has a multi-proof consent for a 60sqm design done under the old minor dwelling rules – which can be used nationally. They’re also currently working on projects that push the design up to the full 70sqm.
“If it’s easily able to be repeatable, that should save you a portion of the cost,” says Darren – specifically, the concept drawing stage.
If a customer wants something fully customised, that’s a different process. But the option of a ready-to-go design is there.
The Investment Case - Costs and Rental Income
Ramin puts the numbers on the table plainly.
From a build perspective, a minor dwelling currently costs somewhere between $300,000 and $450,000. Rental income sits between $500 and $650 per week.
“If you just calculate that based on 5% interest rate – which at the moment is around 4.5% – say okay, 5%. You’re spending $400,000, that’s $20,000 of interest per year. But if you have $500 to $600 rent income, that’s $25,000 to $30,000 in rent income. You’re actually $5,000 to $10,000 in positive cash flow.”
And then there’s the longer-term play.
“I believe, once you have that building there, within a few years, it’s easier to subdivide,” says Ramin. “You can potentially – depending on the conditions – subdivide that and divide into two properties, two titles, and sell them separately. You have two properties. It’s not the main property and minor dwelling – it’s two.”
Darren agrees, but with an important caveat: “The key to this, though, is getting clear on what your long-term goals are. If we know that dwelling is wanting to be subdivided and sold off separately, knowing that upfront is really important – because in that design, we can get it set up so that all your yard setbacks, your drainage is all set up correctly. What are you going to do with the water meter? What do you do with power? We can address all of that right at the beginning of the job.”
The Biggest Mistake People Make
Both Ramin and Darren agree: it’s rushing.
“Don’t rush it,” says Ramin. “Take your time. Think about what you exactly want. Why you want it. What is your budget – before you start. You’re better off spending time at the design level than changing your mind once you start building. That will just cost you huge money.”
Darren adds to this: “You’re too busy getting to the end goal. Just sitting back, taking your time, looking at the design, making sure that everything works. Refine, refine, refine. Takes a little bit more time, but it pays off in the end.”
Ramin also flags the timing of the build: “Even starting a project – if a customer wants to start in July, I always say stop, because that’s the rain season. If you start with excavation and earth removal in that period, you’re stuck. You’re better off doing the excavation in the drier period – February to May, or October. Get out of the mud. Once you’re out of the ground and you have walls and a roof, then it doesn’t matter if it rains.”
To Summarise
In Ramin’s words, here’s the quick checklist to know if your granny flat in NZ in 2026 is likely in the clear without a full building consent:
- Land is flat
- Build stays within one metre of ground level at the finished floor
- No more than four metres high to the ridge
- Two metres from any existing building
- Two metres from the legal boundary
“If all those tick – it’s 99% yes,” says Ramin.
And if it’s a bit more complex than that? That’s when a few hours of due diligence with a designer like Darren can quickly tell you where you stand.
Ready to explore what's possible on your property?
The 2026 granny flat rules in NZ are a real opportunity – and there’s never been a better time to act. Whether you’re thinking about a granny flat for rental income, a family member, or future subdivision potential – get in touch with the Max Style team today and let’s make it happen.
Have more questions about design and consent? Get in touch with Darren directly:
Darren Gubb LBP Design | Professional Member ADNZ Director & Architectural Designer | ADNZ Professional Membership Assessor
📍 4/199c Lincoln Road, Henderson, Auckland 📮 P.O. Box 10-4110, Henderson, Auckland 0654 📞 09 833 3252 ext 1 📱 021 608 897 🌐 gubbdesign.co.nz