Part 2: Granny Flats in New Zealand 2026: Granny Flats & Tiny Homes in 2026 — Yes, There Is a Sensible Way for Leased Land!
After Part 1 of this series, my inbox filled up with messages that all sounded a little bit like this:
“This is all very interesting… but I don’t own land.”
“I want to lease land.”
“And granny flats are permanent — so where does that leave tiny homes?”
Fair questions. Sensible questions.
And luckily — not the dead end many people fear.
Because here’s the reassuring truth:
the new granny flat rules don’t close the door on tiny homes at all.
They quietly open a very sensible, very legal, and very exciting pathway forward — especially for people who want to own their home but lease the land underneath it.
Let’s unpack this properly (without panic, and without concrete being poured unnecessarily).
The Big Misunderstanding: “Granny Flats = Fixed Forever”
From early 2026, New Zealand will allow landowners to add a granny flat / minor dwelling to a property with a main house without needing a building consent and, in many cases, without a resource consent either — provided certain conditions are met.
Naturally, many people hear this and assume:
Granny flats must be permanent
Tiny homes must be on wheels
And therefore the two worlds simply don’t overlap
But the rules don’t actually say that.
What they say is:
the dwelling must meet size limits
comply with the Building Code
meet safety, durability and servicing standards
What they don’t say is:
“Once installed, this dwelling must never be moved again.”
That difference matters.
Because permanent use is not the same thing as irreversible construction.
Why This Matters So Much for People Who Lease Land
Let’s be honest — for many people, especially single women 60+, owning land and a house outright is simply not realistic.
But this model is:
you own your home
you lease the land
you stay independent
and you remain legally secure
The traditional problem has always been:
“If I build on someone else’s land, I’m stuck.”
And that fear is valid — unless you change how the home is installed.
The Quiet Hero of This Story: Screw Piles
Screw piles don’t get much attention, but they should.
They are:
engineered steel foundations
screwed into the ground (not poured)
structurally robust and Building Code compliant
and — crucially — removable
This means a tiny home can be:
properly founded
fully compliant
treated as a legitimate dwelling
without being permanently welded to someone else’s land.
If your lease ends?
The piles come out.
Your home moves on.
No drama. No legal mess. No heartbreak.
It’s not temporary in a flimsy way — it’s secure without being trapped.
So How Do the Granny Flat Rules Help Tiny Homes?
Here’s where things get genuinely exciting.
Under the new regulations:
a landowner with a main dwelling can add one minor dwelling (the granny flat)
provided all standards are met, no building consent is required
in many cases, no resource consent either
Now imagine this:
The landowner doesn’t want to build a granny flat themselves
You want a small, high-quality home
You install a compliant tiny home (not on wheels) on screw piles
The dwelling meets all size and performance criteria
Legally:
the landowner has a permitted minor dwelling
the regulations are satisfied
councils have clarity
insurers and lenders have certainty
Practically:
you own your home
you lease the land
and you have a lawful, stable living arrangement
That’s not a workaround.
That’s the system working exactly as intended.
This Is a Game-Changer for Affordable, Dignified Living
What the new rules really do is this:
They create opportunities galore for:
backyard leasing arrangements
intergenerational living without entanglement
downsizers who want autonomy
women who want security without financial overreach
For the first time in a long while, we have:
a clear national framework
reduced consent hurdles
and a legitimate way to combine leased land + owned home
Tiny homes aren’t excluded.
They’re finally invited to the table — as long as they play by clear, sensible rules.
So Is There a Sensible Way Forward?
Yes. Unequivocally, yes.
The combination of:
the 2026 granny flat regulations
compliant small dwellings
and removable foundations
creates a legal, practical and humane housing pathway for people who don’t want to gamble with grey areas or sink their future into concrete they don’t own.
It’s not about cutting corners.
It’s about using the rules properly.
And when that happens?
Tiny homes stop being seen as “temporary solutions” — and start being recognised as what they truly are:
Thoughtful, independent homes for people who know exactly what they want.
And frankly — that’s something worth getting excited about.