There are some useful changes in regulations coming

With summer arriving and the end of the year approaching, I thought I would let you know about a few changes. There have been some very useful regulation changes on the home front which come into effect over the next few months, these should have the effect of reducing time, paperwork and cost for some projects especially renovations.

Granny Flats

From early 2026, the changes allow homeowners to build a second dwelling on their property more easily, provide housing for extended family, such as aging parents or adult children

•  The maximum size for a granny flat is increasing from 60m² to 70m².

• The building must be new, standalone, one storey and not have a mezzanine floor.

• The building must be 2 metres or more away from any other residential building or legal boundary.

• A building consent will not be required if the structure meets the Building Code and is built by a Licensed Building Practitioner (LBP).

• One granny flat is allowed per property in residential and rural zones without a resource consent, removing this requirement nationwide.

• Homeowners must notify their local council before starting and after completing the build. 

Homeowners will also be able to generate rental income from a separate unit on their property which will also increase the overall value of their property. 

Plumbers

Plumbers in New Zealand will shortly be able to sign off their own work for simple residential dwellings under a new, voluntary, self-certification scheme. Legislation to enable the scheme is expected to be introduced by the end of 2025, with implementation details to follow.  This will put them on the same footing as electricians who have been able to certify their own work since 2010.

Key changes

•  Qualified plumbers and drainlayers can sign off on their own work for simple, single-storey residential dwellings, bypassing traditional Building Consent Authority (BCA) inspections.

•  The scheme is not mandatory; it is an opt-in program for eligible plumbers.

•  Plumbers who sign up for the scheme will be fully responsible for the work they certify.

• To participate, plumbers must meet strict criteria for competency, experience, and trustworthiness.

• For projects using this scheme, a streamlined "nominal consent" process will be used. BCA will not assess plans or conduct regular inspections, instead automatically issuing Code Compliance Certificates if eligibility is confirmed. 

The point to be aware of is, it will be up to the homeowner to determine what qualification the plumber has, as not all plumbers will be able to certify their own work. To be a Registered Certified Plumber you must have worked for a minimum of two years after completing your 4-year apprenticeship under the supervision of another Registered Certified Plumber and then passed your Certification exam.

You can check a plumber’s qualification on the Plumbing, Gasfitters and Drainlayers board website

www.pgdb.co.nz

LVR rules

The Reserve Bank has loosened mortgage lending rules by easing Loan to Value Ratios (LVR) settings from 1 December:

• For owner occupiers, the limit on the share of new lending by banks to customers with an LVR above 80% will increase to 25% (up from 20%) of the banks total residential lending

• For investors, the limit on the share of new lending allowed with an LVR above 70% will increase to 10% (up from 5%).

These changes while not large will allow banks to increased lending especially to first home buyers who often have a less than 20% deposit and help more kiwis onto the property ladder.

The lead up to Christmas can get at bit crazy and we also have another OCR review on the 26^th November. If you have any questions or need any help, please do not hesitate to contact me. If we do not catch up prior to Christmas I hope you and your families have a very merry Christmas!