New Zealand’s building sector focused on reducing delays, cutting costs and improving productivity in 2025, Building and Construction Minister Chris Penk tells Builders and Contractors.
Building and Construction Minister Chris Penk says 2025 was a year focused on making it faster, smarter and safer to build in New Zealand, with reforms aimed at cutting delays, lowering costs and restoring confidence across the sector.
He says long-standing productivity issues and inconsistent building consent processes are major barriers, with 66 different Building Consent Authorities applying the Building Code differently across the country.
Key changes include moves toward voluntary consolidation of consent authorities, greater use of digital tools such as remote inspections, and the introduction of self-certification for trusted builders on low-risk projects.
Penk says these measures are designed to reduce pressure on councils while maintaining strong safeguards to protect homeowners and avoid a repeat of the leaky homes crisis.
The Government has also acted to increase competition in the building products market by removing barriers to high-quality overseas products and recognising international standards.
Exemptions for granny flats are expected to reduce build times and costs while contributing to housing supply.
To support the workforce, a reset of the vocational education system has returned training decisions to regions and industry.
Looking ahead to 2026, Penk’s focus is on passing legislation to lock in reforms, engaging closely with industry, lifting consent numbers and ensuring the building system works better for those on the tools and the homeowners they serve.
The biggest challenge has been reducing the time and cost it takes for people in the sector to get on with the job. From day one, that is the frustration I hear most often from tradies and construction businesses, and it has been a long-standing issue with sluggish productivity holding the sector back for decades.
There is no silver bullet. Some barriers are small but widespread, while others require larger structural reform. In 2025, we focused on both. Practical improvements, such as publishing inspection wait time data, help lift consistency and reduce delays. Larger reforms, like refocusing the earthquake-prone building system, make strengthening work realistic and achievable.
Making it easier and more affordable to build is a work in progress, but progress is being made. The aim has been to restore momentum, support jobs, and give the sector confidence to plan ahead. That work is well underway, and I will continue to push in this direction so builders can spend more time building and less time navigating the system.
One of the biggest barriers in the building consent process is inconsistency. At the moment, builders, designers and homeowners are dealing with 66 different Building Consent Authorities, each applying the Building Code slightly differently. That means an application that’s accepted by one council can be knocked back by the council next door, adding delays, cost and frustration for people just trying to get on with building a home.
To fix this, the Government has agreed to enable voluntary consolidation of council BCAs, so they can group together to deliver consent services. This is about making the system work more smoothly, without forcing councils into a one-size-fits-all model. Changes to the Building Act 2004 will remove barriers that currently make consolidation difficult and streamline the way BCAs operate. A Bill covering these changes, along with updates to liability settings, is expected to be introduced to Parliament in 2026.
Responsibility sits across the system. The Government’s job is to cut red tape and create a regulatory environment that lowers paperwork and cost. Councils need to step up by using modern tools like remote inspections and shared services. Builders and designers also play a role by submitting complete, high-quality applications. When all parts of the system pull in the same direction, it will work more effectively.
Self-certification is designed to speed up straightforward builds while keeping strong safeguards in place. It allows trusted home builders to sign off their own work on entire dwellings which helps clear pressure on councils and lets them focus their time on more complex projects. That makes the whole system work better for everyone and helps bring down delays and costs.
This is not a free pass. Only home builders that choose to opt in and meet robust standards will be able to self-certify. Those standards will be set through regulations and will focus on proven capability, a strong track record of quality work, and having the right systems and financial backing in place to protect homeowners if something goes wrong. Cowboy builders simply will not qualify.
MBIE is already testing early proposals for these rules with industry and other key stakeholders to make sure the settings are practical and give Kiwis confidence in the system. The aim is to back professionals who consistently do the right thing, while keeping clear consequences for those who don’t.
A trusted tradie is someone with the right skills, a history of compliant builds, and accountability to their customers. Homeowners will always have a choice and can decide whether they want to use a self-certifying builder or go through the traditional consent pathway. Done properly, this approach makes life easier for Kiwi homeowners and building professionals, while supporting high standards.
Self-certification is about being smarter with regulation, not lowering the bar. It moves the system away from a one size fits all approach and toward a risk-based model, where the level of oversight matches the complexity of the build. The scheme is limited to builds that are lower risk, while more complex or higher risk projects will continue to receive closer scrutiny.
Strong safeguards are built in. Entry to the scheme will be tightly controlled, with robust criteria that builders must meet before they can opt in. A key protection is the requirement to demonstrate adequate means to cover civil liabilities if work is non-compliant. That could involve financial checks, suitable warranty or defects insurance, or proof of sufficient capital. These settings are designed to protect homeowners and make sure responsibility sits with the people doing the work.
Accountability is also being strengthened through changes to occupational licensing. Licensed Building Practitioners will face clearer expectations and consequences, and consumers will have a straightforward path to take action if something goes wrong.
The lessons from the leaky homes crisis are well understood. This approach keeps oversight where it matters most, backs quality professionals, and maintains strong consumer protections.
Granny flats are not a cure all for the housing shortage, but they are a practical part of the solution. Simple, common-sense changes like exempting minor dwellings on existing properties from building and resource consent rules make it easier for people to add homes where the infrastructure already exists.
By removing unnecessary delays and costs, homeowners could save up to $5,650 on their granny flat project and cut around 14 weeks off a build. Taking this work out of the consenting system also helps councils focus on higher risk and more complex projects, which improves processing times across the board.
This is not about lowering living standards. Granny flats can be up to 70 square metres and must still meet the Building Code. They have to be built by qualified professionals and can include everything Kiwis expect in a modern home. I recently visited a new granny flat with a proper kitchen, bathroom, two bedrooms and a comfortable living area. It was warm, well designed and entirely fit for purpose.
The past year has presented challenges and caused uncertainty for the construction sector. My advice is to stay focused on quality, keep up with changes in the system, and look for opportunities where work is becoming simpler and more affordable to deliver.
From the Government’s side, the focus has been on fixing the basics and getting the settings right so the sector can get moving again. Since coming into office, we have been stripping back unnecessary red tape and working to lift productivity, so builders can spend less time on paperwork and more time on site.
Policy changes can make a real difference on the ground. The new building consent exemption for granny flats is a good example. By removing time consuming consent steps for simple, low risk builds, we expect up to 13,000 additional granny flats over the next decade. That translates directly into more work for builders and related trades.
This approach is about giving the industry confidence to plan ahead, and there are already positive signs. Stats NZ data released at the start of the year shows 35,969 new homes were consented in the year to November 2025, up 7 percent on the previous year. That points to thousands of upcoming jobs and many more roofs over Kiwis’ heads as the pipeline of work rebuilds.
Increasing competition in the building products market is a key part of lowering building costs and getting more homes built. As a small trading nation, New Zealand cannot afford to limit itself to a narrow range of suppliers. Kiwis deserve real choice and fair prices when they are building or renovating.
That is why the Government passed the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Act in April 2025. The changes remove unnecessary barriers to using high quality overseas building products that already meet trusted international standards, while keeping homes healthy, safe and durable.
The new law introduces clearer pathways for recognising overseas certified products and building methods. Where MBIE has recognised a product or system as complying with the Building Code, building consent authorities are required to accept it, provided the conditions are met. This gives builders and designers confidence that approved products will not be delayed or rejected due to inconsistent interpretation, helping projects move faster and reducing costly hold ups.
These changes support stronger competition by giving overseas suppliers confidence to enter the New Zealand market and encouraging more choice for builders and homeowners. They also make it easier for local manufacturers and suppliers to reference well established international standards, which can improve access to overseas markets.
Addressing skill shortages in construction starts with fixing how we train people and making sure learning is closely aligned with real jobs. From January 1, a major reset of the vocational education system has taken effect, with ten regionally governed polytechnics and eight new Industry Skills Boards now operating.
Decision making has been returned to regions and industry, where it belongs. The re-established polytechnics are once again responsible for local training decisions, allowing them to respond to the specific workforce needs of their communities. That local accountability gives providers the flexibility to work directly with employers and adjust training as demand changes. The Open Polytechnic supports the system as an anchor, helping deliver shared programmes efficiently, while a small number of providers remain under transitional arrangements as future models are confirmed.
At the same time, Industry Skills Boards are now at the centre of work-based learning. These boards cover key sectors including construction and infrastructure, and are responsible for setting standards, endorsing programmes, and overseeing apprenticeships and training during the transition period. This ensures qualifications reflect the skills employers need and gives apprentices confidence that their training will lead to strong career opportunities.
Success will be measured by whether the system is working better for the people who use it. That means looking closely at real world data and whether reforms are reducing delays, lowering costs, and making it easier to build.
MBIE already tracks how changes are landing across the sector. A good example is the new mandatory target to speed up building inspection wait times. MBIE publishes quarterly data for every council, so progress is transparent and measurable. In the Q3 2025 release, all 55 Building Consent Authorities that provided data met the target of completing at least 80 percent of inspections within three working days. In practice, that meant around 67,000 inspections were carried out, with 97.3 percent completed within three working days of being requested.
We are also seeing improvement in consent processing. Q3 data shows 95.7 percent of building consent applications, including amendments and code compliance certificates, were processed within the statutory 20 working days. That is up from 93 percent in the same quarter the year before. Faster processing means fewer delays on site and lower holding costs for builders and homeowners.
The proposed liability reforms are about making the building system fairer and more balanced, while keeping strong protections in place for homeowners. In August 2025, Cabinet agreed to move the sector from joint and several liability to proportionate liability.
Under proportionate liability, each party involved in defective building work is responsible for the share of the problem they caused. This avoids situations where one party is left carrying the cost for others who cannot pay, and improves accountability and efficiency across the system. It also gives builders and professionals greater certainty about their risk.
At the same time, the Government is clear that homeowners must remain protected. That is why supporting measures are being introduced alongside the change. Home warranties will be required for all new residential buildings up to three storeys, and for larger renovations of $100,000 or more that involve restricted building work and require a building consent. These warranties provide a clear safety net for homeowners if defects emerge and a responsible party is unable to meet their obligations.
The home warranty market in New Zealand is already well established and will scale to meet this requirement. Warranty providers will be required to register with MBIE, meet minimum standards set in regulations, provide regular reporting, and publish clear, easy to understand information for consumers.
Professional accountability is also being strengthened. Architects, engineers, designers and surveyors involved in building design will be required to hold professional indemnity insurance. This formalises good practice, ensures financial backing is in place, and gives homeowners confidence in the professionals they rely on.
Building in a country like New Zealand means living with real risks, from earthquakes to floods and severe weather. The challenge is to protect life safety while keeping building and strengthening work affordable and achievable.
The Government’s upcoming changes to the earthquake prone building system are a good example of that balance. Cabinet has agreed to move to a more proportionate, risk based approach that focuses effort where it matters most. Fewer buildings will be classified as priority buildings, which currently face much shorter remediation timeframes. This reduces unnecessary cost while still addressing life safety risks in the most vulnerable buildings, particularly in medium and high seismic zones.
Climate change adds another layer of complexity. We can expect more intense rainfall, stronger winds, flooding, drought and wildfire risk. To help people respond in practical ways, MBIE has published a set of quick guides for homeowners and buyers. These cover flooding, higher temperatures, drought and wildfires, and wind and storms, and provide clear, affordable steps people can take when building, buying, renovating or retrofitting a home. They are about helping people make informed choices that improve resilience without driving up costs.
Natural hazards also need to be factored in at the site level. Planning rules and the Building Act both apply when land is affected by hazards. Even where a building consent is not required, such as under the granny flat exemption, adequate steps still need to be taken to protect the land, the building, and surrounding property. This approach keeps safety front and centre while recognising economic reality.
In 2026, the focus is on turning reform into real world change. Over the past year the Government has announced significant changes across the building and construction system, including refocusing the earthquake prone building framework, fixing how liability for defective work is shared, and introducing self-certification for certain low risk projects. The priority now is to get that legislation through Parliament so these reforms can take effect.
Alongside that, I will be spending a lot of time engaging directly with industry. Hearing from builders, designers, councils and suppliers is essential to understanding what is working, what is not, and where the next set of improvements should be made. That feedback will help shape further red tape reduction and inform the policies we take forward.
This year, I want to see building consents continuing to rise, confidence returning to the job market, and more projects getting underway. That includes housing, but also the infrastructure New Zealand needs to support growing communities, stronger public services, and better standards of living. We’re getting on with fixing the basics and building the future.
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