Election pledge targets granny flats, tiny homes, and pensioner housing
A re-elected National Government would widen its granny flat rules to cover tiny homes and set aside at least 20% of places in the Housing Flexible Fund for seniors housing, party leader Christopher Luxon (pictured) has announced.
The pledges form the housing core of National’s retirement plan, which also includes an employer KiwiSaver change for older workers and new protections against financial exploitation of seniors.
Granny flat rules to widen
National says it has already removed the need for building and resource consents for most granny flats. It now proposes allowing an attached garage of up to 40 square metres alongside the 70-square-metre flat, speeding up processing times, limiting fees to cost recovery, and exploring a new licensing class for builders to protect build quality, interest.co.nz reported. The same rules would extend to tiny homes, including those on wheels.
The existing exemption has seen modest take-up since it began on 15 January. A Cabinet paper released by the Ministry of Business, Innovation and Employment (MBIE) shows 580 applications for project information memoranda in the first half of 2026, covering an estimated $96 million in potential building work. That was in line with initial estimates.
“We know many families want to embrace inter-generational living, but councils make it too difficult,” Luxon said.
For mortgage advisers, the changes could open more conversations with clients looking at adding a minor dwelling for ageing parents or multigenerational households, building on the consent-free granny flat rules introduced this year.
A pipeline for pensioner housing
The Housing Flexible Fund allocates money through a competitive process to providers of social homes and affordable rentals. Ringfencing part of it would create what National calls a dedicated pipeline of affordable homes for older New Zealanders.
National pointed to growing demand. People aged 65 or older make up 15% of Housing Register applicants, and a third are 55 or older.
Luxon said not every senior “can – or wants to – move to a retirement village”.
“New Zealand needs many more low cost, affordable pensioner housing units and in government, National will step up to fund and deliver them,” he said.
KiwiSaver, protections, and tax
National would extend compulsory employer KiwiSaver contributions to contributing members aged over 65 from 1 July 2027, so those who keep working receive the same employer contributions as other workers.
Other pledges include 0800 Seniors, a free helpline for navigating government services, and a review of the Enduring Powers of Attorney framework, with possible law changes to better protect older New Zealanders from economic harm. The party has committed to introducing no new taxes, an issue that has featured in the wider election debate over property tax.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
