Building Without a Consent
Since 15 January 2026, certain new, single-storey, standalone dwellings of up to 70 square metres can be built without a building consent, provided every exemption condition is met and the work is carried out or supervised by licensed building professionals. The exemption came from the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025, which received Royal Assent on 24 October 2025 and added Schedule 1A to the Building Act 2004.
The scheme was adjusted again on 8 October 2026. Building Performance's granny flats page says version 2 of its guidance reflects amendments to Schedule 1A that commenced on that date, including allowing certified composite structural building products and clarifying the rules on network utility connections and on-site water, wastewater and stormwater systems. If you build these units, the conditions you priced earlier in the year may no longer be the whole picture.
For builders, designers, plumbers and drainlayers, the important change is not the paperwork that has gone. It is the inspection that has gone, and with it the council as a party that checked the work.
What the Council No Longer Does
The official granny flats exemption guidance is direct: councils do not carry out inspections, issue approvals or a code compliance certificate for these dwellings. Councils have no duty or obligation to assess information supplied to them, and they hold good faith liability protection for storing the records.
The Amendment Act backs that up with a new section 392A of the Building Act, headed "Territorial authority not liable". It provides that no civil proceedings may be brought against a territorial authority for things done or omitted in relation to the information supplied to it under section 42B(4) or section 88(1A), which are the completion records the owner and the licensed building practitioners must send in.
The council still has a role at the start. The owner must apply for and receive a project information memorandum (PIM) before building, and the guidance says the council must issue one for a small stand-alone dwelling within 10 working days. A PIM lapses if the work is not completed within two years.
The Conditions That Define the Exemption
Every condition has to be met. If one is not, the dwelling is not exempt, and the building work needed a consent it did not have. The guidance lists the core design limits.
| Condition | Limit in the official guidance |
|---|---|
| Floor area | Equal to or less than 70 square metres |
| Storeys | One storey only, without a part-storey or mezzanine floor |
| Separation | At least 2 metres from any other residential building or any legal boundary |
| Floor level | No more than one metre above ground |
| Height | No more than four metres above floor level |
| Showers | No level-entry or wet-floor showers |
| Who designs | Licensed building practitioners, registered architects or chartered professional engineers, according to the homeowner fact sheet |
| Completion records | Owner sends them to the council within 20 working days of completion |
The completion deadline has teeth. Under section 42B(5), an owner who fails to send the required information commits an infringement offence and is liable to a fine of up to $1,000. Each licensed building practitioner must give the owner and the council a record of work under section 88(1A), and a new section 27A of the Plumbers, Gasfitters, and Drainlayers Act 2006 requires a record of work for prescribed sanitary plumbing and drainlaying.
Where the Liability Lands
The guidance sets out who is responsible for what. Homeowners are legally responsible for ensuring the building work fully complies. Builders are responsible for ensuring all building work complies with the Building Code. Designers are responsible for ensuring their plans and advice are good enough. A licensed building practitioner who carries out or supervises restricted building work carries the responsibilities that come with that licence.
Consumer protections still apply. The guidance notes that implied warranties apply for 10 years, that builders are responsible for fixing defects that arise within 12 months of completion, and that a written contract is mandatory for building work costing $30,000 or more including GST. It also warns owners that non-compliance can leave them unable to obtain insurance, or facing loss of cover when an insurable event occurs, and that councils may take enforcement action, including a notice to fix, prosecution and fines, if they become aware a completed granny flat does not comply.
Put those together and the pattern is clear. When something goes wrong with a consent-exempt dwelling, there is no council inspection record to point to, and the council cannot be sued over the completion records. The people left in the frame are the owner, the designer, the builder and the trades who signed records of work.
Public Liability, and What It Will Not Do
Public liability insurance is designed for accidental damage to other people's property, and some non-injury losses, caused by your business activities. On a granny flat build that is a real exposure: the site is often a working family property, the new unit sits close to the existing house, and services are tied into existing connections. It is less suited to the cost of putting right your own defective work, which is usually treated differently from damage your work causes to other property. Design errors usually sit with professional indemnity cover rather than public liability.
| Scenario | Who might claim | Question to put to your adviser |
|---|---|---|
| Excavation for the unit undermines a neighbour's fence or retaining wall | Neighbour | Does the policy respond, and are there conditions on excavation or underpinning? |
| A drain connection fails and floods the main house | Owner and their home insurer | Is resulting damage covered when the connection was your own work? |
| The unit turns out not to meet a Schedule 1A condition, so it needed a consent | Owner, possibly a later buyer | Is any part of the cost of rectification insured, or is it excluded as your own work? |
| Plans prove inadequate and the build has to change | Owner | Does the designer hold professional indemnity cover, and does it extend to this work? |
| Defect found years after handover | Owner or subsequent owner | Is your policy written on an occurrence or claims-made basis, and what happens if you stop trading? |
None of this means the cover is inadequate. It means the questions are worth asking before you build a run of these units, not after the first complaint.
A Practical Checklist for Builders and Trades
- Confirm the PIM has been issued before work starts, and keep a copy on file
- Check the design against each Schedule 1A condition, including the 8 October 2026 changes, and record that check
- Take dated photos at the stages a council inspector would normally have seen, especially foundations, framing, cladding, wet areas and drainage
- Complete your record of work promptly so the owner can meet the 20 working day deadline
- Use a written contract for every job over the $30,000 threshold, and make sure it says who is responsible for confirming the exemption applies
- Tell your insurer or adviser that consent-exempt dwellings are now part of your work, and check your public liability limit against the value of the existing house next door, not just the new unit
- If you design as well as build, check whether you hold professional indemnity cover
Next Steps
The exemption removes a step from the build, but it does not remove the risk; it moves more of it onto the people doing the work. Our coverage guide explains what public liability does and does not pick up. To have a referred adviser review your limit and wording with consent-exempt work in mind, Get a Quote or email hello@cover4you.co.nz.