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NZ First leader Winston Peters says allowing more granny flats to be built would help make housing more affordable for families

Property / news
NZ First leader Winston Peters says allowing more granny flats to be built would help make housing more affordable for families
Granny flat

The Ministry of Business, Innovation and Employment is seeking feedback on a Government proposal which would allow property owners to build granny flats without consents. 

Many district plans already allow granny flats without resource consent, but there’s a lack of consistency and different standards across the country. 

A discussion document released on Monday suggests small, self-contained and detached houses meeting certain criteria should be able to be built without application.

To avoid needing a consent a flat would need to be smaller than 60 square meters, one story, and cover less than 70% of the site area in residential zones, with appropriate setbacks.

Granny flats will be able to include plumbing, cooking and sleeping facilities, and more safeguards will be needed to manage risks associated with these features.

The exact details are open for public submissions and are only proposals at this stage. All building work must comply with the New Zealand Building Code, regardless of consent requirements. 

Instead of requiring an engineer's report, the document proposes that all work must be conducted or supervised by licensed construction professionals. 

Public submissions are welcomed until 12 August and any changes to the Building Act and resource management systems will aim to take effect in the middle of next year.

Making it easier to build these small dwellings was promised in the National–New Zealand First coalition agreement late last year. 

Winston Peters, leader of NZ First, said the rule changes would make it more affordable for families to live the way that suits them best.

“High housing costs have a greater impact on Māori, Pasifika, and people with disabilities, as well as seniors – so unlocking the space in the backyards of family members opens the door to new ways of living,” he said in a statement.

RMA Reform Minister Chris Bishop said the announcement was part of a wider package of work to improve the building consent system and address the housing crisis.

“Removing the regulatory red tape will not only speed up the build process, it is also estimated to save up to $6,500 just in the standard building and resource consenting fees per build, not to mention all the savings in time and resource,” he said.

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61 Comments

Just don't flush the toilet. 

Another blow for house prices and Rymans shares if it goes through - so it won't.

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7

Whoop dee doo.

Btw I can report that I got a letter response from C. Bishop five months (!) after I wrote to him. I didn’t even bother to read it, deleted straight away

edit - opened it up from my deleted emails, although he has fobbed me off to his officials at least he said he likes to hear from experts with ideas 😂

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I can put a 60m2 minor dwelling on a property for $120k using these rules.

Currently it's be a couple times more that. Much more again, if it's a primary dwelling.

Needs to happen asap.

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18

Perhaps it depends where you live. Don’t think it will make much if any difference in Auckland and most other bigger cities 

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Still plenty of sections in main centres big enough for this to be a goer.

Or even if smaller and empty, it'd be more viable to build a smaller main dwelling, plus a minor dwelling.

We need more dwellings, cheaper, and the other alternative is dense multi-story, which takes a lot more energy and time to produce.

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Why you think this would halve the price to build a granny flat?

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By the time you get all your ducks in a row for the architectural/design process, resource and building consents, pay your reserve contribution and other fees and follow all the construction due processes, it'd come in about double.

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Granny flats are permitted in most places. Ok you might save a few thousand on BC fees by not needing one. I still don’t see how you think this proposal will halve costs.

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Just a reserve contribution alone could run you 15-25k.

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That bit won't be changing (p17 of the consultation document)

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I work in this sorry industry. Consent costs for minor dwellings in Auckland regularly go over $100k

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Just to clarify - you are saying a building consent processing fee for one granny flat is regularly over 100k? That’s hard to believe. It obviously varies from council to council

If so that is absurd, and the changes would make a big difference for sure

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If it's under 30 squares it isn't, but as has been mentioned here already, it's got a lot of caveats, and 30m2 is a bit on the small side. So currently, if you wanted to legally throw up something around 50m2, with an actual kitchen etc, a bit more liveable especially for more than one person, you're easy going to drop 2 hundy, but keep going.

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Not really answering my question, which relates to consent fees.

Do some councils really charge 100k plus for the building consent fee on a granny flat?

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christchurch city charged  $4k for the resource content, $10k for services contribution, I think about $8k for all the approval and inspections, and the engineering report for the foundations was $3k, the drawings and specification was $4k, and the site survey was $2.5k, 

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Yes. It is not always but it regularly goes into 6 figures. Yes it is absurd.

I have been an engineer in six countries and I have never experienced red tape like Auckland.  

Last year I had a client try to take her own life under the stress of getting a granny flat consented. 

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I really hope you will make a submission on this, and articulate what its currently like and suggest improvements.  Copy the Minister for De-Regulation (Seymour) in on it as well.  If people don't speak up, nothing will change.

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How many can I build?

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One per property/ site

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This still allows clipping of the ticket - the commandeering of the Commons which Master Builders and others pushed when folk were reacting to a government failure (not an owner-builder problem) called 'leaky homes'. 

 

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Great idea

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6

Most district plans already allow for 'granny flats' aka minor residential dwellings in urban and rural zones as a permitted activity. 

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Exactly. 
maybe Building Act tweaks are more meaningful than RMA ones?

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They allow it, but it's currently cumbersome and expensive.

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Presumably you are talking about the building consent process 

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Rules are constantly changing but as far as I know resource consent is required for minor dwellings in several zones in Auckland. 
Could easily pop a hundy grand on design engineering 2 consents and DCs. 
 

Also interested in whether Watercare will treat it as a new connection. 

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Surely you'd just tap into the water connection already on the property.

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Found this

  • A new habitable dwelling on an existing property connects to our networks. If the dwelling is less than 65 sqm or less, you may be eligible for a reduced rate

 

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Most places allow a 30m2 sleepout without kitchen or bathroom without a consent. This is a significant improvement on the status quo

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5

Im all for it ... finally something useful from this govt. Would be even better if you could drop 1 on an empty section that has already been built code compliant so it just requires final very simple signoff...without charging like a wounded Bull....lol 

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The engineering report will have to do with stormwater neutrality and access. This should not cost you more than 3k

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.

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Can you build if you already have a consented minor dwelling?

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You mean if you have a resource consent? Then yeah I guess so, you could build without a building consent etc if you met all the standards in their proposal

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We don't have all the details but provided you don't exceed the site coverage rules, probably.

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Something else that needs thinking about is whether a granny flat is ancillary to the main dwelling. This often implies some sort of family relationship. Very messy, but quite common in district plans. Just do away with it and just have the building standards 

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Exactly. What concern of the Council is it if the occupant is a relative or not?

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All the language being used points to this being designated a "dependent family member flat" and not a separate minor dwelling.  In other words, its an adjunct to the main  house, can only be occupied by members of the main household, and cannot be legally tenanted out under the RTA.  The building requirements are quite different between the two, so you cant just come back and turn a granny flat into a seperate dwelling.

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Total waste of land. 

This will lead to even more 'infill' housing.

Whereas - what we really need to doing is bowling what's there and going up.

'Going up' means larger gardens (more water absorbent) as less ground gets covered for the same number of dwellings. Overseas they have 'perimeter blocks' (i.e. no side yards) up to 6-8 stories surrounding courtyards. NZ has virtually none of these. We're a backwards country.

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The hurdle to go from an extra 2 bedrooms in your backyard to large multi story is fairy high.

We are a backwards country, stuck down the bottom of the world. That's part of the appeal. If modern and cutting edge is your primary concern, we'll never be there, and there's plenty of contenders.

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I agree with you in terms of Auckland. But I think there’s many smaller cities and towns in NZ where things like granny flats are great options. And it’s completely unfeasible to build apartments in those locations, even if it was allowed

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Yes. I spent time in Korea. they don't have much land available for housing, being half mountains, in a country the size of the South Island with 30m people. Only the very poor live in detached houses. Apartments are very well done - a whole small town could be a double complex of 3 buildings 26 storeys. And I've been to some very nice 3 bedroom apartments all with underfloor heating, plenty of light and good sound insulation. Like a house with not as many windows. And the amenities were fine - plenty of parks etc.

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They have some interesting building methods in Sth Korea, some of it extremely standardized (i.e. what could be a 4 component process on site in NZ is pre-manufactured in Korea).

We wouldn't want their landlord system though, you pay up to 80% of the property's value in rent, in advance, which your landlord takes to buy another property with.

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The Church of Ashley will be spiting tacks!!!  

How dare the Govt allow competition, to lower the value still further, of my hoard of houses!??-  he writhes in pain..... and gnashes his teeth.

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We already build a lot of consented crap, so why lots of unconsented crap?

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Ironically, as Auckland seems to be the main place where they've made building a minor dwelling hard, once unlocked the prices of these smaller homes will sky rocket. 

I built a minor dwelling (granny flat) 80sqm for all up under 150k. 100k was the house. That extra 50k was mostly services connecting, more power so new transformer box needed 9k or something.  

That company got popular and prices have doubled, granted during high inflation on all building materials. 

Builders build what makes them money. 

Hence the skewe towards mcmansions. Bigger profit margin. 

I'm just saying builders/tradies won't waste there time building and hooking up a 60sqm house - although for the right price they might - so all minor dwellings will be more expensive as demand increases with limited supply that will want to do it.  

 

 

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We need to train more tradies then, or import em.

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A "granny flat" is not a minor residential dwelling.  Its a "family flat" which is an adjunct to the main household, like a sleepout, and can only be occupied by members of that household.  Once its not being occupied anymore it is supposed to be removed, or have its kitchen decommissioned, or apply to turn it into a minor residential dwelling if it meets the resource and building consent conditions.  

https://ccc.govt.nz/consents-and-licences/resource-consents/resource-co…

So it cannot be rented out to non-family members under the RTA.  It would be better if going to all that expense, that the distinction between the two is removed, and people can build granny flats to rent out.  There must be lots of people who would be happy to rent a self contained unit on someone else's property - singles, single parents, the elderly.  Not everyone is a family.  

 

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Are you correct on this K.W.? I haven't bothered to read the consultation papers as of yet but Willis said on telly this morning that some landlords will use this rule to get better cashflow. 

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Everything I've read so far refers to "family members" and not "tenants".  So if they don't eliminate the distinction between the two, then a granny flat remains a family flat, with the designation actually placed on the house title.  Other councils may treat them differently, but that's how CCC treats them.  Its quite possible that Willis doesnt understand that there is a difference between a minor dwelling that can legally be rented under the RTA, and a family flat that cannot.   Or that she meant a landlord can charge a higher rent because they are renting to a larger family (eg. what was a 3 bedroom house is now a 4-5 bedroom house). 

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Resource Management Act

The focus of this policy under the Resource Management Act (RMA) is to enable small, detached, self-contained, single storey houses for residential use. Under the RMA, the term 'minor residential unit' (MRU) is defined in the National Planning Standards as "a self-contained residential unit that is ancillary to the principal residential unit and is held in common ownership with the principal residential unit on the same site". The proposal is to focus the policy in the RMA on enabling MRUs.

From here  https://www.building.govt.nz/getting-started/building-system-reforms/gr…

 

“Minor residential unit”. This will override the council crap. 

 

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Nothing in the government’s discussion document mentions family members. But the phrase ‘ancillary to’ is ambiguous. Just get rid of it. Just say a second residential dwelling is permitted provided it satisfies X, Y and Z standards (incl. the 60 sq. M floor area maximum)

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What is stopping you from building a string of granny flats contiguous to make a larger 'house'.

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The fact that it would then become a larger house and not covered by the exemptions.

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I'm picking stormwater is going to be an issue. Assuming most minor dwellings are going to be put on the back lawn (which has natural soakage) your now going to have 60m2 of impervious roof area collecting stormwater which you then have to discharge somewhere. I dont think many council are going to be keen on this going into existing networks... so your back to applying for consent, either to connect to the council networks or to build a soak pit to take care of the additional volume of stormwater you are collecting. 

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What about existing granny flats without consent? Should they seek one?

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There won't be a consent process (it will be exempt from requiring building and resource consents, so long as it complies with certain requirements) but you will need to notify council, so that they can increase the rates and levy a development contribution.

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So this would mean the 'Tower of Otara' wouldn't need a consent. Thats progress for you. 

https://www.nzherald.co.nz/nz/kea-kids-news-goes-inside-the-tower-of-ot…

 

 

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In 45 years in the building industry, I have observed a few certainties:

1. No change in Govt policy has ever resulted in reduced costs

2. No change in Local Authority policy has ever resulted in reduced costs

I am fairly certain this proposed change will also not result in reduced costs

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As an engineer I have done a number of big projects as a self builder which is allowed as long as you don’t pay for any help other than plumber and electrician. The way this proposal is written it seems that self builders will not be able to build a granny flat.

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This could benefit landlords more than anyone.

Eg. Joe Landlord has an existing 3 bedroom house on a 650 square metre site. He builds a 55 sq m granny flat for $150k at the back of the site. He rents the granny flat out at $600 pw. Pretty good return on that investment ! 20% gross!!!! He might only have to drop the rent on the existing house a little, if at all

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