Since 15 January 2026, a single-storey standalone granny flat of up to 70 square metres can be built in New Zealand without a building consent, and in qualifying zones without a resource consent either. For owners of larger sections in Pakuranga, Howick, Highland Park and parts of East Tāmaki, that is the most significant change to backyard development economics in years — but the exemption is tightly defined, and stepping outside it puts you straight back into full consenting.
What the Exemption Requires
- Maximum 70m² gross floor area, single-storey, standalone and self-contained.
- Simple design that complies with the Building Code. The exemption removes the consent, not the standard.
- Licensed building professionals. The work must be carried out or supervised by LBPs, along with licensed plumbers, drainlayers, gasfitters and electrical workers — this is restricted building work.
- Notify your council. You need a Project Information Memorandum (PIM) before starting, and you must notify council on completion with final plans, Records of Work and compliance certificates.
Note that it does not have to house a family member. It can be rented, used by extended family, or used as guest accommodation.
The Costs That Did Not Go Away
Development contributions still apply. Councils commonly assess a granny flat up to 70m² at around half a household equivalent unit, identified at the PIM stage and typically payable within a set period after completion. You also still need to confirm your existing wastewater and stormwater services can carry the extra load — an old lateral that cannot cope is a real cost that no exemption removes.
The Resale Angle
A well-designed minor dwelling turns a standard family home into a home-and-income property, which is pursued by two distinct buyer groups at once: multi-generational families who need separate space for parents or adult children, and investors buying for yield. In East Auckland, where multi-generational households are a substantial part of the market, that dual demand is exactly what produces competitive campaigns.
The caution is design. A minor dwelling positioned poorly — blocking the main house's sun, eating the only usable outdoor space, or built to a visibly cheaper standard — can subtract from the total more than it adds. Team Eric Wu at Ray White Botany has completed 82 East Auckland transactions since January 2025 at a median of $1,301,000. Talk to us before you build, so the plan is judged on resale as well as rent.