Govt to Strengthen Building Sector Requirements to Boost Confidence in Housing Market

Key areas of focus include streamlining the consent process and removing barriers to using overseas building products.

The New Zealand Government is taking decisive steps to strengthen the building industry, including stricter requirements for building professionals and new penalties to ensure Kiwis can trust the quality of their homes, says Building and Construction Minister Chris Penk.

"The Government is committed to making building easier and more affordable. To address the chronic housing undersupply that is dragging down the economy and keeping families out of homeownership, we need to reform the way we build and consent homes," Minister Penk said.

Key areas of focus include streamlining the consent process and removing barriers to using overseas building products. These changes aim to reduce delays and lower costs, making housing more accessible. However, Penk emphasized that these efforts must be supported by a competent and accountable workforce.

“To succeed, we need qualified tradespeople who stand by their work and are held accountable if things go wrong,” he said. One reform includes reducing oversight for low-risk work, such as granny flats, but with stronger safeguards in place to deter careless or incompetent practices.

Penk acknowledged that while most tradespeople are skilled and professional, a small minority continues to undermine the sector. Current penalties under the Building Act are insufficient to deter corner-cutting, which has financial consequences for consumers and ratepayers. This leads to overly cautious practices from councils who fear legal liability for defective work.

To address these challenges, the Government is reviewing the registration and licensing systems for building professionals, with a focus on raising competency and accountability standards. This reform aims to improve consumer protection, give regulators more power to hold individuals accountable, and introduce penalties for serious misconduct. One proposal under consultation includes a new offense for hiding non-compliant work during remote inspections.

“These changes will be critical to achieving our goal of making building easier and more affordable. As we reduce oversight for small structures like granny flats, it's essential that we have robust safeguards in place,” Penk noted.

The reforms also support the Government's broader housing agenda, including allowing builders to opt out of building consents if they have insurance, an idea aligned with the ACT-National commitment to improve housing growth.

"By lifting the standards of building professionals and streamlining processes, we aim to rebuild the economy and drive housing growth, so more Kiwis can get ahead,” Penk concluded.