Government Announces SIPs Will Be Added to NZ Granny Flat Exemptions

May 29
4 min read

Updated: 6 days ago

Green Abode | ecobode Transportable Home — **ecobode** Transportable Home

In a positive development for smarter housing in New Zealand, the Government has announced that the granny flat building consent exemption will be expanded to include Structural Insulated Panels with a CodeMark certificate.

The main exemption for certain standalone dwellings of up to 70m² came into force in January 2026.

However, the addition of SIP construction was announced separately in April, with the necessary regulatory change expected to be made by Order in Council during Q3 2026.

For us at Green Abode, this is a welcome step. SIPs have been used globally for decades to create warmer, healthier and more energy-efficient homes. Their inclusion will give homeowners greater choice when considering a small standalone dwelling.

Until the change formally takes effect, SIP projects must continue to follow the consent requirements currently in force.

What the Announced SIP Exemption Change Will Mean

The Government has announced that CodeMark-certified SIPs will be added to the recognised construction systems for the granny flat building consent exemption.

Once the change takes effect, qualifying SIP homes may be able to use the exemption pathway, provided every other design, site and construction condition is met.

The proposed changes are designed to make it easier for homeowners to add:

secondary dwellings
transportable homes
minor dwellings
accommodation for family members
additional income opportunities

without requiring a full building consent process in certain situations.

The latest announcement expands the recognised building materials to include Structural Insulated Panels (SIPs), acknowledging that modern building systems can deliver safe, durable, and high-performing homes.

This is a significant step forward for innovation within the New Zealand building industry.

Why SIP Homes Make Sense for Granny Flats

When most people think about granny flats, they still picture cold sleepouts, poorly insulated cabins, or damp converted garages.

But modern granny flats can be so much more than that.

At Green Abode, we build high-performance homes using Structural Insulated Panels because they create:

superior thermal performance
excellent airtightness
healthier indoor air quality
reduced energy consumption
faster construction timeframes

SIPs consist of an insulating core sandwiched between structural boards, creating a highly efficient building envelope.

That means homes stay:

warmer in winter
cooler in summer
drier year-round
and significantly more energy efficient than many standard building methods.

For small homes, especially, performance matters.

A smaller footprint should never mean compromising on comfort or health.

You can learn more about the benefits of SIP construction in our article: “What is a High-Performance Home?”

Three ecobode Homes Fall Within the 70m² Size Threshold

Three of our ecobode transportable-home designs fall within the exemption’s 70m² size threshold. However, floor area is only one requirement. Eligibility will also depend on the final SIP provisions, the design of the home, the property and whether all other exemption conditions are met.

That creates new opportunities for people looking for:

energy-efficient granny flats
accommodation for ageing parents
independent living spaces for young adults
rural accommodation
home offices or guest accommodation
transportable homes with lower running costs

Unlike many traditional small dwellings, ecobode homes are designed as genuine high-performing homes.

That means better comfort, lower power bills, healthier indoor environments, and smarter long-term performance.

Our ecobode range combines:

SIP construction
energy-efficient design
mechanical ventilation
healthy home principles

into compact homes that are designed specifically for New Zealand conditions.

You can explore more about our transportable SIP homes here:

Healthy Homes Matter More Than Ever

New Zealand continues to struggle with cold, damp housing.

Poor indoor environments contribute to:

mould
condensation
asthma
allergies
high heating costs
unhealthy living conditions

That’s why building performance should be part of every housing conversation, including granny flats.

SIPs help create airtight, thermally efficient homes that support healthier indoor living.

Combined with smart ventilation systems, these homes can maintain balanced indoor temperatures and cleaner air year-round.

Our article on smart ventilation explains this in more detail: “Smart Ventilation in SIP Homes: Stay Comfortable & Energy Efficient.”

A Positive Step for Smarter Housing in New Zealand

This policy change signals something important.

New Zealand is slowly beginning to recognise that innovative building systems like SIPs have a critical role to play in solving:

housing shortages
energy efficiency challenges
unhealthy housing stock
and long-term sustainability goals.

At Green Abode, we believe smaller homes can still perform exceptionally well.

Once the announced SIP change takes effect, more New Zealanders may be able to consider a healthy, energy-efficient SIP home through the streamlined exemption pathway.

If you’re considering a transportable granny flat or energy-efficient small home, now is a good time to explore your options and understand which consent pathway currently applies.