New Zealand Granny Flat Rules Explained (70m² Regulations)
The Government has recently introduced new regulations allowing granny flats up to 70 square metres to be built under a more consistent, nationally aligned framework.
These changes are intended to:
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Increase housing supply
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Reduce consenting friction
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Create clearer expectations across councils
At Arbol, we welcome this shift - when it’s done properly.
1. National consistency (finally)
New Zealand has 66 local councils acting as Building Control Authorities (BCAs).
Each applies the Building Code slightly differently, with local interpretations that can lead to unexpected delays, redesigns, and additional costs.
While many BCAs operate consistently, inconsistency remains one of the biggest sources of frustration for homeowners and builders alike.
The new granny flat regulations introduce a clear nationwide baseline, particularly around:
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Maximum internal floor area: 70m²
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Setbacks: minimum 2m from boundaries and existing dwellings
This consistency helps reduce risk, uncertainty, and time delays - especially for smaller, well-considered homes.
2. A shift toward smaller, smarter homes
New Zealand’s long-standing focus on ever-larger homes is changing.
With rising:
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Construction costs
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Living expenses
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Energy prices
It’s becoming clear that large, high-consumption homes are not the future.
We hear the same reaction repeatedly when people walk through Arbol homes:
“This is only 70 square metres? It feels bigger than our current house.”
That’s not accidental.
Good homes feel generous because they are:
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Well planned
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Functional
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Comfortable
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Free of wasted space
Thoughtful layouts, correctly sized rooms, integrated storage, and well-placed windows matter more than raw floor area.
3. Increasing housing availability (with care)
New Zealand needs more housing - urgently.
Granny flats and small homes can play a meaningful role when they are durable, comfortable, and designed for long-term living, not as short-term responses.
Speed alone is not the answer.
Quality still matters.
4. No shortcuts - important clarification
Even under the new regulations:
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Homes must meet NZ Building Code
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Work must be completed by Licensed Building Practitioners (LBPs)
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Electrical, plumbing, and drainage work must be carried out by appropriately qualified trades
This is not a deregulated free-for-all.
A note of caution (worth reading)
Whenever regulations change, parts of the industry move quickly - sometimes too quickly.
We’re already seeing:
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New companies appearing overnight
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Heavy reliance on renders and catalogues
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Little evidence of completed, lived-in homes
Before committing, homeowners should ask some basic but important questions.
Questions worth asking any provider:
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Who is actually in their team - designers, builders, project managers?
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Are they qualified? Do they hold an LBP?
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Do they have completed homes you can walk through?
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What is their real-world energy use?
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Is ventilation designed, or just assumed?
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Can you speak to previous clients?
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What insurances and contracts are in place?
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How do they handle problems when things don’t go to plan?
These questions aren’t about catching people out - they’re about protecting yourself.
Things people often overlook
Even with the new rules:
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A PIM (planning check) is still required
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Councils may still apply Development Contributions
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Often in the range of $5,000–$20,000
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Site conditions, servicing, and access still matter
Understanding these early avoids budget surprises later.
Why Arbol?
This approach isn’t new to us.
Since 2022, Arbol has delivered 32 homes from Tutukaka to Papatowai - many of them small, high-performance homes designed for full-time living by couples and families.
Our homes are designed to:
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Use significantly less energy
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Remain comfortable year-round
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Require less maintenance
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Support healthier indoor environments
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Last for generations, not marketing cycles
We design and build in-house, managing projects from:
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Site assessment and planning
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Design and consenting
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Manufacturing and delivery
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Foundations, services, and compliance
There are no shortcuts.
If something sounds dramatically cheaper, it’s usually because something has been removed - insulation continuity, ventilation systems, window performance, materials, or quality control.
Those decisions have long-term consequences.
The takeaway
The new granny flat regulations are a positive step.
Done well, they can:
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Increase housing supply
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Enable smarter use of land
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Support better, more efficient living
Done poorly, they risk repeating old mistakes.
If you’re considering a small home or granny flat, understanding the rules - and choosing an experienced team - makes all the difference.