June 2025
Reading Time: 4 Minutes
Granny flats are growing in popularity across New Zealand as more homeowners look to unlock extra income or create flexible living spaces. With legal changes already underway, it's now easier than ever to get started, but it's important to also consider design, layout, and tenant appeal if you're planning to build.
In New Zealand, the term “granny flat” is commonly used to describe a small, secondary dwelling on the same property as the main home. Councils and legislation typically refer to these as “minor dwellings.” Both terms refer to the same type of structure, a self-contained living space that’s separate from the main house, often used for rental income, extended family, or guest accommodation.
The current legal framework allows many homeowners to build a granny flat of up to 70 square metres, provided they meet their council’s building and planning requirements. This typically includes applying for building consent and, in some cases, resource consent depending on zoning rules.
From early 2026, new government legislation will make it even easier:
This means the process will soon become more streamlined nationwide, removing some of the red tape and encouraging more small-scale developments.
While the legal barriers are coming down, not every granny flat adds value or functions well in practice. It’s important to think about who will live in the flat, how it fits with the main house, and how it interacts with the surrounding neighbourhood.
If you're planning to rent out the granny flat, tenants generally value a sense of independence and privacy. While it’s common to share a driveway, the layout should allow for clearly defined parking and access so that one car doesn’t block another. It’s also important to ensure that people coming and going from the granny flat aren’t constantly passing through the primary household’s social areas or being observed from living spaces. If the flat is at the rear of the property, try to create a pathway that feels private and separate from the main house. This helps make the space more appealing to tenants and avoids friction between occupants.
Parking availability is important. In some areas, on-street parking is limited or may face future restrictions. A granny flat without dedicated off-street parking could be harder to rent or command a lower rent.
A granny flat that feels like a self-contained, standalone home is more attractive to tenants. Adding fencing, outdoor space, and ensuring physical separation from the main house can enhance liveability and improve both rental return and resale value.
Granny flats are a promising opportunity, particularly with legislative changes making it easier to build. But success depends on more than just getting approval. Design and usability matter just as much. If you’re planning one, consider layout, access, and long-term value, and speak to a property manager early on to help guide the process.
Can I build a granny flat on my property in New Zealand?
Yes — building a granny flat is becoming easier thanks to upcoming legal changes. From 2026, you'll be able to construct a self-contained unit up to 70 square metres without needing building consent, provided it meets certain standards. But beyond the green light, success depends on smart design, privacy considerations, and long-term liveability.
How big can a granny flat be in New Zealand?
Up to 70 square metres is becoming the standard, especially under upcoming rules. However, some councils may currently impose different restrictions.
Will I need building consent for a granny flat?
Yes, currently you will need building consent. From 2026, new rules will allow you to build without consent if the design meets criteria and is built or supervised by a licensed professional.
Does a granny flat need its own access?
Not legally, but tenants often prefer it. Independent access can improve privacy, make the property more appealing, and lead to better rental outcomes.
Do I need to provide parking for a granny flat?
Not always, but it’s recommended. Providing off-street parking improves the flat’s appeal and helps future-proof your investment.
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