In response to home affordability challenges, the NZ Government announced on 17 June 2024, a proposal to build small, standalone, self-contained houses, up to 60m2 without needing a building or resource consent, provided they meet certain criteria.
Able Spaces owner, Norma McCarty, discusses the implications and advises homeowners to stay informed. She encourages them also to share their thoughts before submissions close on 15 August 2024.
What are the changes?
The Ministry of Business, Innovation and Employment and the Ministry for the Environment are seeking feedback on options to facilitate building these structures without consents in rural and residential zones. This is provided they meet criteria to reduce risks related to structural failure, fire, weathertightness, and sanitation. Final decisions are expected later this year, with legislative changes anticipated by mid-2025.
Government is proposing that all work is conducted or supervised by competent professionals under current occupational licensing requirements, to ensure all building work will meet the building code.
Is this a good thing?
While increasing affordable housing is positive and something New Zealand needs, Norma expresses concern about the proposal’s potential impact on quality and safety. The current consent process ensures homes are built correctly, inspected throughout the build process, are up to code and fit for purpose. Removing it might lead to substandard construction by unscrupulous builders, as well as other unintended consequences.
Norma also questions whether the proposed options have considered the impact on property values, getting insurance on the new granny flats and what occupational licensing organisation will do if things go wrong.
How does it work currently?
Currently, obtaining building consent involves several steps:
Architectural working drawings of what is to be built, clearly showing how the final build will look, along with the specifications and details of the build
Design of foundations (in most cases with engineering input) to determine the kind of foundations required to support the structure
Services assessment to determine the location and adequacy of sewer, stormwater and drinking water services
Site plan – a detailed layout showing the position of the house and its connection to services
The consent application, which contains all the above information, is then assessed by Council, to determine all the necessary requirements have been met. Once satisfied, Council issues the building consent giving permission to start building.
Once the build is underway, regular inspections take place until the build is completed. A final inspection is carried out and once passed, a Code Compliance Certificate can be issued by Council.
All these documents remain on the property file at Council so any potential new homeowners can do their due diligence to ensure any renovations, extensions or changes to the property have been done correctly and to Code.
What are the implications, with the consent removed?
Besides the risk of oversights and details getting missed from the list above, the removal of the building consent process poses additional implications around insurance and value.
Norma explains, “As a homeowner, if I don’t have to get a consent to build a granny flat on my property, I need to make sure I am going to be able to get insurance for it. Has Government liaised with Insurance companies over these proposed options? Under this new process, is the structure going to increase the value of my property? How do I know, as a homeowner, that it complies with a standard and if I want to sell my property, the changes that have been made won’t hinder the sale? No-one wants to build something on their property that is not fit for purpose, does not add value, or could even diminish the value of their property.”
“While the building consent process is for the actual build itself, the resource consent looks at the district plan rules (which are also to be simplified). This detail is around what people are permitted to do on their site. For example, the district plan will state you must have a minimum distance from the new dwelling to the boundary, among other rules. From the proposal, Government still wants to have certain checks in place but have come up with four options, most of which don’t take into account the differences in zones across New Zealand and some also seem unpractical. There is a lot to consider.”
The existing building consent, once issued, clearly states what inspections are required once building begins and once the building is finished, there is a final check. At that time all the documentation is sent through from the various tradespeople to obtain the Code of Compliance. If the existing process is removed, the homeowner does not have the same level of protection. “Let me give you an example. If a licensed building practitioner does something wrong and isn’t willing to fix it, the homeowner could complain to the Board to get that LBP licence removed but sometimes this doesn’t stop them building and making the same deliberate mistakes. This is where the checks are so important as they make sure the building work is safe and the house has been built correctly.”
“Some of the four options for the new proposal around Building Consents are doing away with the existing checks and proposing a different set of options, e.g. a health certification among other checks (which are still being worked out). I am not convinced the new system will offer homeowners enough protection. If the consent and inspection processes are removed, alternative methods must ensure new homes are safe, liveable, and dry.”
Alternative options
Norma proposes alternative ways to making homes more affordable. “Making homes more affordable is a fantastic goal and I totally agree. Why not achieve that goal by keeping the consent process in place, but simply removing the cost to homeowners? Or make building materials cheaper? Labour costs have not changed too much but the cost of building materials has skyrocketed, which has impacted on housing affordability. I have suggested these alternatives in my submission.”
What's next?
There is a discussion document available online and submissions are now being called for. Norma encourages everyone, including those outside the industry, to participate. She particularly urges homeowners to get involved, review the document and stay informed about the options being considered. For more information and to view the discussion document, click here.
