Building Reform 2025: Supporting Smarter, Safer Communities

The building reforms aim to make the system more proportionate to actual risk, reduce unnecessary costs, and support better outcomes for communities—especially in regional and low-risk areas.

Key changes proposed

• Low-Risk Areas Removed
• Auckland, Northland, and the Chatham Islands will be excluded from the earthquake-prone building (EPB) framework.
• Smarter Risk-Based Assessments
• A new tiered system will replace the %NBS metric, focusing on building type, location, and actual risk.
• Reduced Compliance Burden
• Over half of buildings currently on the EPB register will be removed or face fewer upgrade requirements.
• Extended Timeframes
• Building owners may apply for deadline extensions of up to 15 years.
• Decoupling of Upgrade Requirements
• Fire safety and disability access upgrades will no longer be automatically required alongside seismic strengthening.
• Refined Priority Building Criteria
• Priority buildings will be limited to those blocking emergency routes or located in high-traffic areas.

Additional Building System Reforms

• Proportionate Liability
  Councils will only be responsible for their share of fault in building-related issues.
• Consent System Improvements
  Councils may consolidate Building Consent Authority (BCA) functions, and new targets will reduce inspection wait times. Rules for minor structures will be simplified.
• Greater Product Flexibility
  Overseas building products will be easier to use, giving builders more choice.

Implications for Local Government

Councils will need to:

• Update EPB registers and apply new risk-based criteria.
• Adjust compliance and consent processes.
• Prepare for changes in liability exposure.
• Engage with communities—especially Māori and regional stakeholders.
• Coordinate with MBIE for guidance and implementation.

Benefits for Communities:

• NZ$8.2 billion in estimated savings for building owners and agencies.
• Reduced compliance burden for regional and heritage buildings.
• Improved ability to preserve culturally significant structures.
• A more targeted and effective approach to building safety.

Considerations for Māori housing

• MBIE advises that the building system should be more responsive to Māori building needs and aspirations. Councils are encouraged to engage directly with iwi and hapū to address barriers and support culturally appropriate housing solutions.

Timeline

A draft Bill covering liability setting changes and measures to enable BCA voluntary consolidation will be introduced to Parliament in early 2026. Until the Bill is passed, the current liability and BCA settings remain in place.