Investors Welcome Government Changes Making It Easier To Build Sleepouts, Sheds And Garages

The New Zealand Property Investors Federation (NZPIF) today welcomed the Government’s plan to make it easier to build sleepouts, sheds and garages. “It's going to make life easier and better for homeowners, property investors and tenants,” said Matt Ball, NZPIF PR & Advocacy Manager.

“This change will make it easier to add an extra bedroom, a new garage to keep cars safe, or a shed for tenants to store bikes, tools and other items. It will add value to an investment property and amenity for renters. It’s a win-win.”

“In today’s rental market, where rents are falling and tenants are hard to find, being able to offer better amenities could make all the difference. Offering an extra bedroom for a tenant’s teenager, or an external office or hobby space may be what sets you apart from the house down the road. We believe landlords will jump at the chance to use this rule change.”

It will also mean that investors and homeowners will be able to build a garage closer to the front boundary of their property, a sensible change in today’s market where space is at a premium.

Cabinet has agreed to remove the minimum required distance between single storey buildings under 10 square metres and a property boundary or other residential building (setback distance). Cabinet has also agreed to reduce the setback distance to one metre for single storey buildings between 10 and 30 square metres.

Previously, garden sheds and other single storey detached buildings like sleep outs or garages had to be as far from a boundary or residential building as they were tall. Anything closer than that required building consent.

While the setback rules are being changed, other rules like site coverage, fire wall restrictions will still apply. The government is aiming to have the new rules in force by late 2025.

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