The government's plan to simplify granny flat regulations could profoundly affect the building industry, opening up a new stream of opportunity for residential builders. Under the proposed changes, people will be able to build a small, secondary self-contained dwelling on their property without needing resource consent, making the whole process easier and more cost effective.

The government says the proposals will "make it more affordable for families to live the way that suits them best," and "unlocking the space in the backyards of family members opens the door to new ways of living."