6 Apr 2025

New granny flat policy will boost NZ housing, property investors' group says

12:09 pm on 6 April 2025
Table and chairs on the terrace of a flat in summer.

Property Investors Federation spokesperson Matt Ball says he applauds the change. Photo: 123rf

A group representing property investors is hopeful the government's new granny flat policy will provide a much needed boost to the country's housing supply.

A planned law change would allow home owners to build granny flats up to 70 square metres without the need for a building consent.

Property Investors Federation spokesperson Matt Ball applauded the change, noting many homeowners found the existing rules to be needlessly restrictive.

"A lot of our members do actually want to develop and add houses or rooms to their properties, and it can be very slow getting through council consent processes," he said.

"This [policy] creates a very simple way of increasing housing supply, which is what we need so urgently in New Zealand."

That hope was shared by Minister for Building and Construction Chris Penk.

"These changes are expected to see 13,000 more granny flats built over the next decade - giving families more affordable, flexible housing options," Penk said in a statement.

Ball said the policy would also benefit renters.

"New Zealand is well known for not building enough houses and this initiative will help unlock the power of property investors to increase housing and rental supply," he said.

"If you have a proper functioning market for rentals where supply and demand are roughly in balance, it's going to mean the prices are much more predictable and much more even."

Renters United president Zac Thomas applauded the announcement, but said it failed to make up for other government policies.

"Making it easier to build granny flats is a step in the right direction, we support common-sense moves to increase housing supply," he said.

"But it's one step forward, two steps back when the same government brings back no-cause evictions and makes it harder to access emergency housing, forcing hundreds of Kiwis to live in cars and on the street."

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