Recent widely publicised changes to the Building Act exempt certain types of building work from the requirement to get a building consent. Announcements for these new exemptions often emphasise the time, cost and complexity involved in getting a building consent. However, they generally leave out the value a building consent can add, particularly the piece of mind quality assurance and compliance oversight provides to the build process.
Before undertaking any exempt building work, it is important to understand the requirements of the exemption, your responsibilities (whether you are a building owner, designer, builder or other involved trade), and the potential risks and benefits of getting a consent versus proceeding without one.
New Schedule 1 Exemptions
In October 2025, MBIE introduced a new building consent exemption for roof-mounted solar panels and amended the boundary setback distance conditions for single storey detached buildings up to 30 square metres.
Roof-Mounted Solar Panels
Roof mounted solar arrays are now allowed to be installed up to 40 square metres in wind zones up to High without a building consent. They may be installed in wind zones greater than High or over 40 square metres when the design is carried out or reviewed by a Chartered Professional Engineer.
This exemption is designed to reduce the cost and burden of installation of solar panels in New Zealand encouraging wider uptake of solar power. Installation is considered low risk and unlikely to cause any danger or lead to building failure if installed in accordance with manufacturer’s specifications. However, risks to the building's structural integrity and weathertightness involved in the fixing of the panels will still need to be carefully managed.
Boundary Setbacks for Small Detached Buildings
The boundary setback for single storey detached buildings up to 30 square metres was previously required to be the height of the building from the property boundary. The new setback conditions:
- remove all conditions for buildings under 10 square metres such as sheds
- reduce the setback to a minimum of 1 metre for buildings 10 to 30 square metres.
The original setback conditions were intended to reduce the risk of the spread of fire between buildings over the property boundary. The reduction in setback conditions acknowledge that the risk of spread of fire from small outbuildings is low and that buildings up to 30 square metres such as sleepouts only need to comply to the same extent as other detached dwellings under the the building code (which are required to have a minimum 1m separation under C/AS1).
There are other conditions and limitations on constructing a building up to 30 square metres without a building consent. If you are considering carrying out work under this exemption you should review the full provisions in Schedule 1 and review the guidance carefully.
Important Considerations for Schedule 1 Work
While these exemptions increase allowances for what homeowners can do on their own land, there are still limitations and conditions on using them to carry out building work without a building consent. Most importantly, all building work, whether it requires building consent or not, is required to comply with the building code.
It is also important to note that none of these exemptions override district plan requirements. Before going ahead with any Schedule 1 work you may need to check whether the work requires a resource consent.
Although it is strongly recommended that you seek professional advice if you are unsure whether your building work meets the requirements of Schedule 1 exemptions, it is ultimately the owner’s responsibility under the Building Act to get a building consent if one is required, so you must be sure before carrying out work that may or may not be exempt.
Small Standalone Dwelling Exemption (aka Granny Flats)
In January 2026 the government introduced Schedule 1A Clause 1 which exempts small standalone dwellings (aka granny flats) up to 70 square metres meeting certain conditions and limitations from the requirement to get a building consent. The building must be of a simple design, be designed and constructed by licensed professionals and meet other conditions of the exemption. To avoid requiring a resource consent, it must also comply with the National Environmental Standards for Medium Density Residential Development (NES-MDRS) and any applicable district plan conditions.
Owners relying on this exemption must:
- Obtain a Project Information Memorandum (PIM) from the local council before carrying out any building work
- pay any required development contributions to the council on completion of building work
- Only hire licensed professionals to carry out the design and building work and provide the necessary records of building work, and final documentation to the council on the completion of work.
The PIM will provide a recommendation from the council on whether the work meets the requirements of the Schedule 1A exemption.
Complying with the exemption is complex and owners must be aware of all the requirements before beginning building work. MBIE has provided a series of checklists and guidance to ensure that owners meet all their requirements.
When the Exemption May Be Appropriate
Owners should consider their situation, their property and the type of building they wish to construct as to whether the exemption is appropriate, you may wish to consider factors such as the below:
- Your dwelling is new, single storey, standalone, self-contained and 70 square metres or less
- You're using lightweight construction materials (eg timber or steel framing)
- You want to start building quickly and complete the build faster without waiting for formal consent approval or council inspections
- You're looking to reduce upfront costs, such as consent fees
- You're comfortable with a simplified process that involves less paperwork and fewer inspections
- You're building for residential use such as multigenerational living
- You understand that licensed building professionals must still carry out or supervise all restricted building work
- You're happy to notify the council before and after construction and submit a project information memorandum (PIM) application
- Your design is straightforward and unlikely to change beyond the scope of the granny flats exemption conditions during construction
A building consent may be more appropriate if:
- Your design is larger than 70 square metres, multi-storey or includes complex features
- Your project is an alteration to an existing building or building work is already underway
- Your project is on land that is likely to be subject to a natural hazard and this cannot be mitigated as required by the exemption conditions
- You want to use heavier or more complex materials, such as panelised construction or structural steel
- You need the ability to include features like level-entry showers or a solid fuel heater
- You prefer the legal certainty of having a formal record of approval for insurance, resale or future renovations
- You're comfortable with a longer timeframe to get formal approval before starting construction
- You want to ensure your project is fully inspected, documented and supported by council oversight.
Like the other Schedule 1 exemptions, it is the owners responsibility to ensure that the dwelling that they are constructing meets the requirements of the exemption, if they cannot meet the requirements of the exemption for any reason either before or during the building work then it is their responsibility to apply for a building consent (or if required a certificate of acceptance). Owners should be aware that they may be subject to infringements if they carry out building work outside the scope of the exemption or do not meet all the requirements of taking part in the exemption such as providing all the required completion documents to council on completion of building work.
Risks and Benefits of completing building work under an exemption
Using an exemption can reduce timeframes and eliminate consent fees (although owners are still required to pay PIM application fees). Work can be constructed at the pace of the building professionals involved rather than to the timeframes and availability of the council and their inspectors.
There are circumstances where building consent provides limited added value relative to cost, particularly for genuinely low risk building work. However, in other cases, a consent may add value over time even if the building work is legally exempt.
Building consents act as third party quality assurance check on building work to help ensure that the work is compliant with the building code. While all parties have a responsibility to ensure the compliance of the building work, third party quality control checks are important in any industry, no matter the competency of those involved. Third party involvement helps to protect the homeowner and if you are producing high value building work without a building consent you may consider getting a third party to review the building work to protect your investment.
Third party checks can also be important for gaining insurance, finance and your ability to resell the property. In recent years Code Compliance Certificates, which are an important but not a legally required part of the building consent process have become essential for gaining mortgages and therefore being able to sell your property. There has been a huge uptick in homeowners trying to certify building work previously undertaken without a building consent when trying to sell by way of a certificate of acceptance. A certificate of acceptance if issued does not provide the same assurance as a building consent and may come with limitations.
Before undertaking work under an exemption such as a granny flat, you should check with your insurer if they have any additional requirements over and above the requirements of the exemption in order to insure the building. Finance and insurers may ask for things like:
- The advice provided by councils to understand if the home that is built is suitable for the land it is built on
- Confirmation that records have been submitted to the local council
- Final design plans for building, sanitary plumbing and drainlaying work
- Records of Work
- Certificates of Work
- Certificates of Compliance
- Proof of payment for development contributions
They may also ask for quality assurance plans to assist with monitoring and inspection of the building work outside of the council process.
Final Advice
If you are undertaking work under an exemption whether under Schedule 1 or under the new Schedule 1A Clause 1 for a small standalone dwelling, make sure you are clear on the requirements of the exemption before you begin and that they clearly fit the building work you are doing and will for the future use of your property.
If in doubt, discuss with a local building professional you trust, or your local territorial authority. Keep comprehensive records of all the work you do, photograph progress, retain documentation for future owners, and record the exemption that you are using. If you still aren’t sure, get a building consent, it may turn out to be more valuable than you think.