Over the last year, the Government has made several announcements under its "Going for Housing Growth" agenda. These changes aim to address what is seen as "a highly conservative and risk averse approach"1 to building consent processes, which the Government considers has increased the time and cost of building higher than is necessary to achieve the purposes of the Building Act 2004. This article highlights some of the key announcements to date.
- Building consent authority structural reform: In October 2024 the Government began work on reforming the building consent system to create a more streamlined system that achieves consistent decisions and outcomes across the country. To date MBIE has consulted with around 90% of the 67 building consent authorities (BCAs) responsible for processing building consent applications and conducting inspections, together with various industry groups. Recommendations arising from those consultations are expected to include:
o consolidation of BCAs;
o increasing the scope of building work exempt from the requirements to obtain building consent; and
o reviewing the role of liability settings for BCAs and private insurance in the consent system.
- Overseas building products: The Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Act was passed earlier this year.2 The amendments create pathways for the Minister for Building and Construction to recognise groups of overseas product standards and certification schemes. BCAs will be required to accept certified products without further verification. Regulations are expected to be developed by October, and MBIE has estimated this may allow more than 12,000 essential products (plasterboard, cladding and insulation) to be more widely used throughout the country – opening up sectors of the market to new entrants and alternative solutions.
- Increased exempt work: While consideration of additional exempt work forms part of the broader structural reform work noted above, in April 2025 the Government announced plans to amend the Building Act to exempt granny flats (of up to 70m2) from needing a building consent if:
o the design is "simple" and meets the Building Code;
o the work is carried out by authorised building professionals; and
o homeowners give notice to the BCA before commencing and after completing the work.
This legislation is expected to be introduced mid-year, alongside changes to the National Environmental Standards under the Resource Management Act 1991, which will permit granny flats in certain areas without the need for resource consent.3
- Self-certification for builders, plumbers and drainlayers: By the end of 2025, legislation will be introduced to create a voluntary self-certification regime for eligible builders, plumbers and drainlayers. This will allow them to self-certify work (including design and construction) on "simple residential dwellings" (to be defined by regulations). BCAs will still be required to provide nominal building consents, and the regime will be limited to "reputable building companies" working on large numbers of "near-identical houses". 4
- Inspection targets: Later this year, targets will be introduced requiring BCAs to complete 80% of building inspections within three working days. Performance data tracking the success of each BCA against the target will be released quarterly. The Government has indicated it will also provide BCAs with guidance outlining "practical strategies to boost efficiency, reduce bottlenecks, and help authorities better prioritise their workloads".5
Adjusting the settings
While few would disagree that the process of obtaining a building consent and getting through the various building inspections could be improved, the Government will no doubt be keeping a careful watch on the balance between enabling activity and maintaining quality assurance – particularly when it comes to the construction of what for many New Zealanders is their most significant asset and while disputes regarding "leaky buildings" are still making their way through the court system.
Some of the areas we expect to be top of mind include:
- Environmental conditions: New Zealand's unique environmental factors such as proximity to fault lines, coastal locations and the harsh sun, have created an environment ill-suited to some overseas products and methods. These factors will need to be considered and addressed in the regulatory framework.
- Risk allocation: BCAs have, on occasion, borne the burden of being the "last party standing" where multiple parties have joint and several liability for defective building work, but other parties are absent or insolvent. The Law Commission has twice reviewed the principle of joint and several liability in this area (in 1998 and again in 2014) and continued to recommend its retention, as did the previous Government in a 2022 review of risk, liability and insurance in the building sector.6 The increasing scope of self-certification and its impact on risk and liability will no doubt bring this back into view as part of the broader review into structural reform of the building consent system.
- Building warranty insurance: New Zealand does not currently have either an established building defects insurance market, or a publicly provided building warranty insurance scheme. Previous reviews concluded that the case for a government-provided insurance scheme was not then justified.7 However, the current Government is considering the role of private insurance in the context of the broader building consent system review and may look to overseas examples of mandatory or opt-in schemes for new builds – particularly where self-certification is involved.
Summary
As the Government continues to push forward with its "Going for Housing Growth" agenda, the building sector is poised for significant regulatory adjustments. These changes aim to streamline processes, introduce new standards and open up the market to alternative solutions.
While these reforms promise to reduce costs and improve efficiency, the Government will be focused on maintaining a balance between enabling construction activity and ensuring quality assurance. Stakeholders in the construction industry should stay informed and prepared to adapt to these evolving regulations. The coming months will be pivotal as these reforms take shape, and we will continue to monitor and provide updates on their impact.
