Tiny house or granny flat? What a difference a name makes

Opinion: New Zealanders in the ‘tiny house’ movement could be forgiven for thinking their time has finally come.

The Government has opened consultation on a proposed National Environmental Standard to make it easier to build small, self-contained and detached houses on a property that already has an existing home on it, without needing a building or resource consent.

Rather than ‘tiny homes’ these are called ‘granny flats’. This name change under the standard would force councils to allow buildings up to 60 square metres in rural and residential zones, making them easier and less costly to build and increasing the supply of affordable homes for all New Zealanders.

The proposal follows a commitment in the National-NZ First coalition agreement requiring the Government to “amend the Building Act and the resource consent system to make it easier to build granny flats or other small structures up to 60 square metres, requiring only an engineer’s report”.

But the discussion document released as part of the announcement reveals that the requirement for an engineer’s report has been abandoned, as it could mean additional costs and engineering services.

Instead, the required criteria is 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”. Some district plan rules would still apply, for example mitigating against flood risk, building size, distance from a boundary, and the percentage of a property able to be covered in buildings.

While average district plans (excluding medium density) have maximum site coverage in residential zones between 35 and 50 percent, the consultation document proposes setting it at either 50, 60 or 70 percent site coverage.

Currently, a building consent is not required for a detached building between 10 and 30 square metres that does not contain cooking or sanitary facilities, facilities for the storage of potable water or sleeping accommodation unless the building is used in connection with a dwelling.

New Zealanders have been trying to solve the housing shortage and affordability issue with tiny homes for some decades. The land, and a tiny home, may cost under $200,000 to $300,000, and its small size means maintenance costs are lower.

Tiny house is not a defined term in the Building Act, and they are also known as compact dwellings, detached standalone dwellings, and tiny houses on wheels. A tiny house could be considered as a building or a vehicle, or both. A building consent may be required even if the tiny house has wheels as it may meet the definition of a building if it is immovable and occupied by people on a permanent or long-term basis.

The objective of the Building Act and the Building Code is to ensure buildings are safe, healthy and durable for those who live in them.

So, whether a tiny home or a granny flat, all building work must comply with the Building Code, even if it does not require a building consent.

Some councils only allow tiny homes in specific zones, some councils prohibit them altogether, and if a tiny home violates zoning regulations, there may be legal consequences.

Other issues that limit the functionality of tiny homes include securing land, as many subdivisions have restrictive covenants that prohibit tiny homes. Consents are required for connecting services such as power, supply water, wastewater, stormwater and even a kitchen, which requires time and money.

Off-grid living may require a chemical toilet, tanked water, and solar power. While land in rural areas may be affordable, it may mean a longer commute for facilities and provisioning with consequent high fuel costs.

Others are recognised as an answer to the housing crisis for older people, as when Age Concern Rotorua commissioned the building of three tiny homes on land the organisation owns. When the ballot for the affordable homes was held, demand vastly exceeded supply.

Minor dwellings, whether named tiny house or granny flat, might provide a stream of income for an older person who owns the primary dwelling, or may provide an affordable rental home for an older person.

But waiving of protections and standards does not bode well. We are still suffering the consequences of deregulation with high-cost repairs to leaky buildings. And as many New Zealanders now know, the risk of losing their fully consented house due to increased flooding has become all too real.

Nor is it safe to assume that someone adding a minor dwelling onto their property will do so in the best interests of their council, their neighbours and their future tenants.