Granny flats: What new rules mean for costs, consents and your rates

New Government rules aim to make it easier for homeowners to build small granny flats on their properties but there are still rules and regulations. Photo / Unsplash

You no longer need a building consent or a resource consent to build a backyard granny flat, but there are still costs, rules and regulations around what you can and cannot do.

It also means a rate increase for a second dwelling on your property.

The new Government rules aim to make it easier for homeowners to build small granny flats on their properties.

Hastings District Council Mayor Wendy Schollum said

people need to understand the changes so they could plan with confidence.

“Granny flats can make a real difference to the community,” Schollum said.

“Whether that’s for supporting older people to stay close to family while maintaining independence, creating accessible living options for disabled people, or adding flexible housing options at a time when housing pressure is being felt across the district.”

All builds need a council-issued Project Information Memorandum (PIM) before work starts.

John O’Shaughnessy, council’s planning and regulatory services group manager, said a PIM helps identify risks and constraints early, including hazard risks, servicing and whether the exemption is likely to apply.

“Every site will be different,” O’Shaughnessy said.

“Early conversations can save people time, cost and frustration later on.”

Homeowners will need to pay development contribution costs.

A council spokesperson said these costs would be assessed during the preparation of the PIM and depend on the area and size of the new building.

“For a granny flat added to a property with an existing home in the urban area, the cost is likely to be between $17,000 and $30,000.

“In a rural residential area, it is likely to be between $4000 and $7000 – again depending on size and area.

“Development Contributions are how council funds the cumulative costs of the public infrastructure needed to support growth throughout the district.

“This ensures the level of service for existing residents is not compromised by growth, and that the cost of growth is not an additional cost on all ratepayers.”

Property owners also pay for on-site plumbing and connection to the council’s reticulated services, construction costs, plumbing and electrical costs, professional fees, and increased rates for the second dwelling.

The new rules only apply to new, standalone, single-storey, 70sq m or less buildings, designed and built to meet the Building Code and built or supervised by licensed building professionals.

Resource Consent will not be needed if the project complies with national planning standards for minor dwellings or the Hastings District Plan rules that apply to the site.

All buildings have to be at least 2m away from other residential buildings and any legal boundary.

The council remains responsible for addressing unsafe or non-compliant building work.

At the build’s conclusion, all required documentation must be provided to the council, including final plans, Records of Work from Licensed Building Practitioners, and plumbing, drainage, gas, and electrical certifications, as well as payment of any applicable development contributions.

The spokesperson said the Government estimates the average saving from adding a granny flat to a property with an existing main home would be about $5500.

Council encourages anyone considering a granny flat to talk with staff before committing to design or construction.

More information, including detailed guidance and frequently asked questions, is available on the HDC website.

LDR is local body journalism co-funded by RNZ and NZ On Air.