Proposed Building Consent Exemption - What You Need to Know

You’ve probably heard by now that the government is looking at scrapping building consent requirements for small standalone dwellings like granny flats. Earlier this month, MBIE’s Building Performance team released a detailed checklist outlining the proposed conditions for how that might work. While this change is still in the pipeline(expected to come into effect in early 2026), it may offer more flexibility for some property owners and developers - but it won’t suddenly make building simple or cheap.

At Modern Building Solutions, we’ve broken it down for you so you know what’s changing, what’s not, and how it impacts your build.

What Is the Proposal?

This exemption would allow certain small, standalone homes to be built without going through the standard building consent process - as long as they meet a strict set of criteria. These conditions aim to keep builds safe, low-risk, and code-compliant.

Here’s a snapshot of the key requirements:

Building Design &Use

·        Must be a new, standalone, single-storey building

·        Classified as a Housing – detached dwelling under Clause A1 of the Building Code

·        Intended for a single household or family

·        Must fully comply with the New Zealand Building Code

Size & Setbacks

·        Maximum net floor area: 70m²

·        Floor level: No more than 1m above the ground

·        Height: No more than 4m above the floor level

·        Must be at least 2 metres away from any other structure or legal boundary

Construction Materials

·        Lightweight roof materials only

·        Framing: Light steel or light timber

·        Wall cladding: Must weigh less than 220kg/m²

Amenities & Services

Plumbing and drainage must follow Acceptable Solutions in Clause E1 and G12 of the Building Code

Must include:

·        Interconnected smoke alarms

·        Independent power/gas supply (where applicable)

·        Electric or gas heating

·        Level-entry showers will only be permitted once new licensing is available

Who Can Build It?

All work must be carried out or supervised by Licensed Building Practitioners (LBPs), and certified plumbers, drainlayers, gasfitters, and electricians

Must include a:

·        Record of Work (RoW)

·        Certificate of Work (CoW)

·        Energy Work Certificate (including electrical/gas safety compliance)

Notifying the Council

Even though this is a consent exemption, councils still need to be notified at two stages:

1.      Before you build – by submitting a Project Information Memorandum (PIM) request

2.      After completion – with a full set of updated as-built plans (including plumbing and drainage)

Note: Councils can advise whether they think your proposed build meets the exemption conditions - but it’s not an approval. It’s up to you to ensure full compliance.

Building on Hazardous Land

If your land is subject to natural hazards (e.g. flooding, erosion), you will still need to go through the traditional consent process—unless your council explicitly confirms otherwise.

Key Takeaway: Know the Limits

This exemption is intended for low-risk, simple dwellings. It’s not a blanket removal of all building consent requirements—and it won’t apply to every project.

If you don’t meet every single condition? A full building consent will still be required.

And if you’ve already started building? You’re not eligible to claim this exemption retrospectively.

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Will This Make Building Cheaper?

No, not significantly. While saving on consent fees sounds great, the largest cost in building isn’t the paperwork- it’s the build itself. Materials, labour, transport, site prep, and finishing costs will still make up the bulk of your budget.

So why wait for the government to drop building consent fees... when we’ll cover them for you right now?

At Modern Building Solutions, we already handle the entire building consent process for you - saving you time, stress, and hassle. And now, for the month of June, we’re going one step further by covering the cost of your building consent fees too!*

No waiting for policy changes. No red tape. Just smarter building, starting now.

Ready to Get Started? Take the guesswork out of your build. With our expert team, full consent management, and this limited-time June promotion, there’s never been a better time to begin! Enquire today to see how we can build your dream, together.

Source: https://www.building.govt.nz/getting-started/building-system-reforms/granny-flats/proposed-building-consent-exemption-conditions-for-small-standalone-dwellings

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*Terms and conditions apply.

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