The Central App

New granny flat exemption will still come at a cost to homeowners

The Central App

Aimee Wilson

20 January 2026, 5:56 PM

  New granny flat exemption will still come at a cost to homeownersGranny flats no longer need a building consent under new Government rules. Image: File

Central Otago builders are still waiting to see how much demand there will be from the new Government changes to standalone granny flats.


Under the changes that came into effect this week, buildings up to 70m² are now able to built under a building consent exemption.



But they still have to meet Building Code and require full construction drawings and documentation.


ATB Building owner Lomas Ainsley said he was surprised at some of the comments he had heard recently, with people thinking they could go and do the work themselves.


“I am a bit worried there will be a bit of cowboy work going on.”



There is also the issue of on-selling the property, if the granny flat is not completed properly, and the paperwork signed off by a licensed building practitioner.


Home owners will also need a PIM (Project Information Memorandum) from councils, which details the permitted ruling under each District Plan, and approvals to connect to stormwater and wastewater services.


The exemption process is intended to speed things up at the start of the project, with fewer council fees and less inspection administration.


But builders say it will put more responsibility onto them and the home owner, and the costs of building granny flats aren’t necessarily cheaper either.


“It will still cost a bit because those small jobs add up,” Lomas said.



Cromwell builder Brook Carr said construction is a very competitive industry and he expects there will be more companies that start to specialise in making granny flats offsite.


Architectural designer Scott Ede sees huge potential in the changes, and believes it will open the door to a range of possibilities.


From enabling multigenerational living, to creating rental income or flexible work-from-home spaces, he also warns it won’t come cheap.


Kitchens, bathrooms and development contributions can push costs higher than people expect.


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