The Granny Flat Initiative: A New National Standard for Building Smaller Dwellings & Minor Residential Units
New Zealanders now have the ability to build minor units (or ‘Granny Flats) up to 70m² on their properties without requiring resource consent*.
On 15 January 2026, a significant change to New Zealand’s resource management system came into effect. The Resource Management (National Environmental Standards for Detached Minor Residential Units) Standards 2025 – known as NES-DMRU 2025 – introduces new standards designed to simplify the building process for smaller residential dwellings, as long as they meet certain requirements.
These regulations are part of a broader update to national direction under the Resource Management Act 1991 (RMA) and have been designed to support housing supply and reduce regulatory costs and delays for small residential developments.
So – What is the NES-DMRU?
At its core, the NES-DMRU is a national environmental standard that sets clear, consistent rules across New Zealand for detached minor residential units, most commonly known as ‘Granny Flats’.
Under the standard:
- Homeowners can build a stand-alone small dwelling (a minor residential unit) generally up to around 70 m², without needing a resource consent, provided the unit meets specific criteria.
- These standards apply in specified zones (e.g. Residential, Rural, Māori Purpose Zone) and include requirements for things such as site coverage, setbacks, and other technical conditions.
- While resource consent
s may no longer be needed for these small homes, other rules and standards (such as natural hazards, infrastructure, heritage protections, and building code compliance) will still apply.
This national standard is paired with related amendments to the Building Act, creating a complementary regime that reduces both resource consent and building consent requirements for qualifying small dwellings.
Why do the NES-DMRU regulations matter for developers and homeowners?
Boosting Housing Supply
New Zealand has long faced housing shortages, especially in cities and towns where finding affordable options is difficult. By streamlining the approval process for granny flats and minor units, the NES-DMRU aims to:
- Encourage more homes to be built quickly and at lower cost.
- Enable homeowners to add extra dwellings to their property without the time and expense of resource consents.
- Analysts estimate that thousands of new minor units could be delivered over the next decade thanks to these changes.
Reducing Red Tape
Before these regulations, building a detached minor residential unit often meant:
- Applying for resource consent (which can be costly and slow).
- Providing detailed assessments of effects on the environment, neighbours, and infrastructure.
The NES-DMRU removes the resource consent step for qualifying units, meaning more projects can proceed as permitted activities, provided they comply with the standard’s rules. This reduces uncertainty and speeds up development.
National Consistency
One of the long-standing critiques of New Zealand’s planning system under the RMA was inconsistency between councils, what’s allowed on one site in one region might require consent in another. National standards like the NES-DMRU create:
- Consistent rules across all councils, so homeowners and developers know what’s allowed nationwide.
- A foundation for how the new planning system (being phased in alongside RMA reform) will handle similar low-impact activities.
What It Doesn’t Do
It’s also worth noting what these regulations do not change:
- They don’t alter broader planning frameworks (like zoning rules on what uses are permitted overall).
- They don’t remove all regulatory oversight, matters like natural hazards, infrastructure constraints, heritage protections, and environmental limits still need to be considered under existing plans.
- They operate within the old RMA framework, but are designed to inform the new planning and environmental system that’s being introduced as the RMA is replaced.
What does this mean for future developments?
For Property Owners:
- You’ll likely find it easier and cheaper to add a small secondary dwelling on your property.
- This can provide rental income, support extended family living arrangements, and make better use of existing land.
For Developers & Councils:
- Minor residential units become a more predictable and streamlined pathway in consenting and planning.
- Councils must implement the standards consistently in planning decisions.
For Housing Supply:
- The changes are a piece of the wider housing and planning reform agenda focused on unlocking land for development, speeding up approvals, and addressing supply constraints.
- While this alone won’t solve housing supply challenges, it removes a common barrier for small home development.
In Summary
The Resource Management (National Environmental Standards for Detached Minor Residential Units) Regulations 2025 represent a practical, targeted reform with tangible benefits for housing development in New Zealand. By creating a nationally consistent, simplified programme for building smaller dwellings, granny flats and other minor residential units without resource consent, it aims to boost housing supply, cut costs and delays, and help modernise the planning system, while still maintaining key environmental and safety standards.
