People will be able to apply for a new category of dwelling unit from Monday.

The new units will have an assessment number but will be restricted from having a private car registered to the address.

The change means homeowners with smaller properties will be able to get rental income, fulfilling a pledge from the Progressive Labour Party’s Throne Speech.

Previously, there was no way to issue an assessment number to an address that would not automatically include the ability to register a car against the unit.

That limited the creation of dwelling units to those properties that were able to provide the required car parking on their site.

Home affairs minister Walton Brown said: “Many homeowners have space to create an additional unit, but are unable to create additional parking spaces.

“This provides a new opportunity for homeowners, who would otherwise not be able to build additional units because of parking constraints, to maximise their potential for rental income.”