Over the past year, the Government has introduced a series of changes to building consent requirements aimed at reducing delays, costs, and inconsistencies across the sector. Amy Rutherford (Partner) and Margot Ramsay (Law Clerk) of law firm Greenwood Roche highlight was has changed so far, and what may be coming next.
Consent rules have already been relaxed, making it easier to construct granny flats, sheds and garages (within certain size restraints) without a building consent.
In mid-2025, the Government also introduced a private consenting authority to ease pressure on councils and to accelerate approvals.
However, bigger reform is in sight. The Government has signalled plans to overhaul construction sector liability settings, and to allow councils to voluntarily consolidate their Building Consent Authorities functions. These measures sit alongside the broader reset of the consenting system, with the Planning Bill expected to be enacted in 2026.
Consent exemptions for granny flats, sheds, and garages
Granny flats up to 70 square metres can now be built without a building or resource consent, provided the design complies with the Building Code, and the work is carried out or supervised by Licenced Building Practitioners. The Government estimates these changes will save homeowners $5650 in direct costs, and reduce build times by up to 14 weeks.
Consent requirements have also been relaxed for single-storey detached buildings such as sheds, garages, and sleep-outs. Previously, such buildings had to be set back from boundaries or other buildings by a distance equal to their height for a consent exemption.
Under the new rules, buildings under 10 square metres may be built up to the boundary or another building without a consent; and buildings between 10 and 30 square metres may be built within one metre of a boundary or another building without a consent. These changes are intended to reduce consenting delays and costs, while retaining Building Code compliance.
Private consenting authority
In May 2025, a new private consenting authority, Building Consent Approvals Ltd, was approved and registered under the Building Act 2004. The authority plans to carry out one-third of building inspections remotely, and to focus on low-risk residential projects.
The initiative aims to speed up processing times and free up councils to concentrate on higher-risk and more complex builds. Further detail on this initiative is available in our Building Today July 2025 article.
Reform to liability settings for the construction sector
Ahead of the election, the Government has signalled major changes to the building consent system aimed at addressing “risk-averse behaviour that slows productivity and delays the delivery of new homes, public buildings and commercial developments,” according to Building and Construction Minister Chris Penk.
The current “joint and several” model will be replaced with the “proportionate liability” system similar to that used in Australia. Under this model each defendant in a construction claim will be liable only for their share of the loss or damage, as determined by the courts.
The reform is intended to reduce the liability burden on councils, which are often the last party financially able to cover damages.
As discussed in our Building Today September 2025 article, the “proportionate liability” model carries risks of payment shortfalls if defendants face liquidity issues.
To mitigate this, the Government plans several supporting measures:
• Mandatory professional indemnity insurance for building professionals, including architects and engineers,
• Compulsory home warranties for new residential buildings up to three storeys, and for renovations exceeding $100,000, covering a one-year defect period and a 10-year structural warranty, and
• Stronger disciplinary penalties for Licensed Building Practitioners, including doubling the maximum fine and suspension period.
Voluntary consolidation of Building Consent Authorities
The Government also plans to allow councils to voluntarily consolidate their Building Consent Authorities (BCA) functions. This initiative is designed to tackle inconsistencies in consenting practices across New Zealand’s 66 BCAs.
By pooling resources such as building inspectors and IT systems, councils can reduce duplication, cut costs and improve efficiency. The Government is encouraging councils to take this opportunity to modernise and streamline their consenting operations.
Broader planning system overhaul
These initiatives sit alongside the Government’s wider reform of New Zealand’s planning and consenting framework, which aims to streamline decision-making, improve consistency, and speed up delivery of critical projects.
The Resource Management (Consenting and Other System Changes) Amendment Act 2025 introduced interim changes to make it easier to consent for infrastructure, housing, and renewable energy projects, providing a bridge until the full reforms are in place.
This approach is intended to reduce red tape, cut costs, and support faster project delivery, particularly for projects of national significance.
Looking ahead
The Planning Bill and Natural Environment Bill, expected to be enacted in 2026, are set to replace the Resource Management Act 1991 with a more modern, outcomes-focused planning framework.
Key objectives include:
• Simplifying planning rules to make consent processes more predictable and transparent,
• Reducing inconsistency across regions and councils, which has historically slowed development,
• Prioritising housing supply and critical infrastructure, while balancing environmental protection, and
• Enabling integrated decision-making across local, regional, and central government levels.
Together with the building consent reforms, these legislative changes are expected to transform the construction and development landscape, making 2026 a pivotal year for housing, public infrastructure, and the wider construction sector.
