What is the 70m² Exemption?

Simon Clegg — 7 March 2026

In late 2025, the New Zealand Government passed one of the most significant changes to the Building Act in decades. From 15 January 2026, homeowners across New Zealand can build a small standalone dwelling of up to 70 square metres without needing a traditional building consent. This change — commonly referred to as the 70m² exemption — has created real opportunities for Kiwis looking to add housing to their properties faster, more affordably, and with far less red tape than before.

But what does the exemption actually mean in practice? And how do you know if it applies to your situation?

What the Law Changed

Before January 2026, any habitable dwelling — no matter how small — required a full building consent from your local council. That process typically involved submitting detailed plans, paying application fees averaging around $4,000–$5,000, waiting weeks or months for approval, and then undergoing council inspections throughout the build.

The new exemption removes that requirement for qualifying small dwellings. If your project meets all the criteria set out in the Building and Construction (Small Stand-alone Dwellings) Amendment Act 2025, you can build without going through the traditional consent process at all.

This is a significant shift. It puts New Zealand in line with other countries that have streamlined pathways for small-scale residential construction, and it's expected to result in around 13,000 additional dwellings being built over the next decade.

What Qualifies Under the Exemption

The exemption is not a free-for-all. There are specific criteria your project must meet to use this pathway. The dwelling must be:

• New and standalone — The exemption only applies to brand new construction. It cannot be used to retrospectively approve existing buildings, and the dwelling must be detached — not attached to your existing home.
• Single storey — Two-storey designs, mezzanines, and loft spaces do not qualify. The building must be a simple, single-level structure.
• Under 70m² in floor area — This includes any integrated garage. The 70m² limit is measured as net internal floor area.
• Self-contained — The dwelling must function as a complete, independent home — with its own kitchen, bathroom, and living areas.
• Within height limits — The floor level must be no more than 1 metre above ground, and the total building height no more than 4 metres.
• Set back from boundaries — The structure must be at least 2 metres from any other building or property boundary.
• Built to the Building Code — Removing the consent requirement does not remove the obligation to build to New Zealand's Building Code. Every exempt dwelling must still meet the same safety, durability, weathertightness, and energy efficiency standards as any consented home.

Who Must Be Involved

One of the most important points to understand is that the exemption removes paperwork — not professionalism. All work that falls under Restricted Building Work must still be carried out or supervised by Licensed Building Practitioners (LBPs). This includes structural, weathertightness, and design work. Electrical and plumbing work must also be completed by registered tradespeople.

Your LBPs are required to provide Records of Work to both you and your council on completion. This documentation becomes part of the property's history and is important for insurance and future sale purposes.

What You Still Need to Do

Even without a building consent, there are obligations you must meet:

• You must apply for a Project Information Memorandum (PIM) from your local council before starting. A PIM identifies any site-specific information — such as flood risks, ground conditions, or heritage overlays — that could affect your build.
• You must notify your council before construction begins and again when it is completed. Failure to do so can result in penalties.
• You may still owe development contributions. These are charges councils levy to fund infrastructure — roads, water, wastewater — and they apply to new dwellings regardless of consent status.

What the Exemption Does Not Remove

A common misunderstanding is that no building consent means no rules. That is not the case. The exemption specifically removes the building consent process. It does not override:

• Resource consent requirements that may still apply due to your specific site, zoning overlays, flood zones, heritage areas, or coastal management zones. However, a new National Environmental Standard now requires most councils to permit one small standalone dwelling per property without resource consent, provided basic planning rules are met.
• Title restrictions such as covenants, easements, or body corporate rules that may prohibit additional dwellings on your property regardless of what building law allows.
• The Building Code itself, which continues to apply in full.

Is This the Right Pathway for Your Project?

The 70m² exemption works best for straightforward projects on uncomplicated sites — a flat section in a standard residential or rural zone, with no unusual overlays or title restrictions, where you want to build a simple, well-designed small home.

If your site has significant slope, is in a flood or coastal zone, or your design is anything other than simple and single-storey, you may need to go through the standard consent process instead — or at least get professional advice before assuming the exemption applies.

At FORMA, all of our plans are designed specifically to meet the requirements of the 70m² exemption. We work with the constraints of the rule rather than against them — creating efficient, liveable homes that qualify from the outset. If you're considering a small standalone dwelling and want plans that are built for this pathway, we'd love to help. Custom plans start from $5,000.