Auckland’s construction sector is set to benefit from the Government’s biggest overhaul of the building consent system in two decades — reforms that could speed up housing delivery and ease pressure on ratepayers-described as the most significant changes since the Building Act was introduced in 2004.
Building and Construction Minister Chris Penk said the changes will tackle long-standing inefficiencies that have slowed down projects and added to Auckland’s already high housing costs.
“The building sector has the potential to be an economic powerhouse, yet productivity has stalled since 1985 despite major advances in building methods and technology,” Penk said.
“New Zealand’s sluggish consenting system is delaying projects and driving up costs, making the average standalone house here 50 percent more expensive to build than in Australia. We must eliminate system blockages to speed up the delivery of new homes and infrastructure, ” he added.
Liability changes
At the heart of the reforms is a plan to replace the current “joint and several liability” system, where councils can be held responsible for the entire cost of defective building work if other parties cannot pay. Penk said this has created risk-aversion among councils, slowing down approvals and adding costs for homeowners and builders.
A high-profile case in Queenstown highlighted the issue. In 2015, the Oaks Shores body corporate filed a $160 million claim for weathertight defects. The developer had gone into voluntary liquidation, leaving ratepayers potentially liable for the entire claim. Had it not been settled privately, rates could have increased by $300 a year for three decades.
Under the new “proportionate liability” model, each party will be responsible only for their share of the work. The Government is also considering extra protections for homeowners, such as mandatory professional indemnity insurance and home warranty schemes, similar to systems in Australia.
“It’s time to put the responsibility where it belongs,” Penk said.
Streamlining consents
The second major change will allow councils to voluntarily consolidate their Building Consent Authority (BCA) functions. With 66 BCAs nationwide, builders and homeowners often face delays and inconsistent decisions depending on which council they deal with.
“It is ridiculous builders, designers and homeowners must navigate 66 different interpretations of the Building Code,” Penk said. “Builders can be rejected on paperwork that would be accepted by a neighbouring authority simply because each BCA applies the rules differently.”
Consolidation would let councils share inspectors and IT systems, reduce duplication, and pass savings on to ratepayers.
Industry support
The reforms have been welcomed by industry leaders. New Zealand Certified Builders Associations said the package represented the most significant change for the building industry in a generation.
Penk said clearing blockages in the consent system was critical to economic growth and the Government was committed to “getting the building and construction sector firing on all cylinders.”
The changes will require amendments to the Building Act 2004. A Bill is expected to be introduced to Parliament in early 2026.
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