Big changes are coming to the way you can build a minor dwelling in New Zealand. From early 2026, new rules may make it easier to build a small, standalone home on your property, but as with anything in building, the details matter.

Here’s what you need to know about the upcoming changes and why getting started now might still be the smartest move.

From early 2026, you’ll be allowed to build a small dwelling up to 70 m² on many residential and rural properties without needing a building or resource consent, provided you meet certain conditions.

But while the idea sounds simple, there are still several rules you’ll need to follow to ensure your building is legal and safe.

• The building must comply with the New Zealand Building Code.
• It must be a simple, single-storey design.
• Construction must be carried out or supervised by a Licensed Building Practitioner (LBP).
• You must notify the council before you start and once you’ve finished by submitting a Project Information Memorandum (PIM).
• Only one granny flat per site is allowed, and it must be at least 2 m away from boundaries and other buildings.
• The building needs to use lightweight materials: for example, roofs under 20 kg/m², and walls under 220 kg/m².

You’ll also still need to pay development contributions to your council as these help cover the cost of infrastructure like water, wastewater, and roads.

One common misconception is that you can build without any interactions with your local Council. This is not true, and you need to provide Council with information on how your building meets the rules. They won’t approve your design as such, but if your site or design doesn’t comply, you could face fines, extra costs, or even the need for a consent after the fact. This could mean very costly remedial work.

Some areas may have exemptions in place which means you still need a consent such as Heritage zones and/or natural hazard areas (potentially like Rotorua’s geothermal CBD). Furthermore, your land may have private covenants in place and these rules do not negate that.

We hear it often: “We’ll wait for the new rules, it’ll be easier.” But here’s why that might not be the best idea:

• Uncertainty  – Councils and the industry will need time to figure out how to apply the rules locally, and there’s likely to be confusion at first.
• Delays – Builders and councils will be inundated with applications when the rules kick in, leading to backlogs.
• Lost income – Every month you delay could mean missed rental income or enjoyment from your new home.
• Your site may still not qualify – Some properties won’t meet the exemption rules, so waiting may not save you anything.

In short: you could wait for the rules to change, wait again for councils to catch up, then wait even longer for your build to start, when you could have already completed it and started earning and enjoying.

At Exeter Homes, we believe in doing things properly, without cutting corners.

That’s why we’ve chosen to continue obtaining full yard building consents for our minor dwellings, even after the new rules come into effect. Why? Because it gives you certainty, protects your investment, and ensures your home is properly signed off and structurally sound. We handle the council process for you, so there’s no added stress.

And importantly, it means that if problems arise in the future from companies cutting corners (think Leaky Homes 2.0), you can rest assured your home was consented and legal and will not be a victim of these issues.

We’ll take advantage of the new system wherever we believe it won’t create issues for you, for example, not needing a second building consent or a resource consent to site the home on your land. That’s why we’re training our team to become experts in the new rules, so when they come into effect, we’ll be ready to submit your PIM paperwork without delay.

We do expect some savings, thanks to removing the need for a second building consent and resource consent for the second dwelling. These savings may not dramatically lower the total project cost, but we estimate they could amount to around 1–2% overall.

To back up our belief that you shouldn’t wait, we’re offering to cover up to $10,000 towards your consent and planning fees* if you start your building project with us now.

That way, you can avoid the chaos of 2026, secure your rental income sooner, and enjoy the peace of mind of a properly consented home.

The new rules are exciting, but they’re not a free-for-all. You still need a good team, the right paperwork, and expert guidance.

At Exeter Homes, we’re here to help you every step of the way.

Contact us today to get started or to ask any questions. We’re happy to help!

*This offer is subject to availability and applies to new contracts signed with Exeter Homes before 30 September 2025. The contribution of up to $10,000 (including GST) is provided as a credit towards the actual costs incurred for designing and preparing the building consent application and Council building consent fees (the offer does not cover development contributions, infrastructure connection fees, or any other charges outside of the consent and planning process). Any unused portion is not redeemable for cash or transferable. Exeter Homes reserves the right to withdraw or amend this offer at any time, at its sole discretion, without prior notice.