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Self-certification and new licensing laws are coming next year

A number of significant changes affecting the residential building industry put forward by the government last year are closer to becoming reality following industry consultation and are likely to come into force next year.

Top of the list is the move to self-certification for “approved” builders, plumbers and drainlayers so they can sign off their own work, a reform designed to “strip back the layers of regulation choking productivity in the building system,” according to Building and Construction Minister Chris Penk.

“Only proven professionals, who meet strict criteria, will be eligible for the scheme – and only for simple residential dwellings,” says Penk, which means “BCAs will be freed up to focus on high-risk, complex builds instead of being bogged down by simple homes.”

 

Faster consents

Penk says that “making it easier and more affordable to build opens the door to homeownership for more Kiwis, gives families choice about where they live, and supports growth and job creation in the construction sector.

“We can’t achieve this vision while the building consent system remains slow and overloaded. Even simple, single-storey homes must go through around 12 inspections before they’re finished, with costly delays when demand is high.”

Penk estimated that approximately 3000 homes would be built annually under the self-certification scheme, which would take some pressure off consent authorities and potentially speed up the consenting process overall.

He also announced an intention to introduce measures to require BCAs to complete building inspections within three days, saying wait times can stretch up to a week, costing builders around $400 for every day a project is held up.

“Updated guidance will be issued to BCAs, outlining practical strategies to boost efficiency, reduce bottlenecks and help authorities better prioritise their workloads.”

Remote inspections

Another part of the Government’s plan to speed up the consenting process is to actively encourage BCAs to make greater use of remote building inspections.

“In some parts of the country, like the Mackenzie District, there is only one building inspector who must travel long distances to sites,” says Penk, “and in other parts of the country, inspectors spend long periods in congested traffic.

“Remote inspections are an important productivity-enhancing solution that reduces the need for inspectors to travel, allows more inspections to take place each day and enables inspectors to work across regions.

“There will be some situations where on-site inspections are still needed, for example, due to complex construction, lack of internet coverage or where physical testing is needed.

“However, in many cases, remote inspections may be better than traditional on-site inspections as they allow for more accurate record keeping of the build process.”

Beefing up the LBP scheme

While the building industry has generally welcomed the idea of self-certification, there has been concern that it could inadvertently enable dodgy builders to take advantage of the system. Not so. Self-certification comes with strict guardrails.

A revision of the occupational licensing regime will come into force next year, which Minister Penk says is targeted at a small number of cowboy operators who consistently indulge in dodgy work practices.

“New rules will give the small minority of bad operators the chance to shape up or ship out,” and reiterated that any work to “unblock the building consent system won’t lead to corners being cut.”

The changes will affect Licensed Building Practitioners (LBPs), licensed plumbers, gasfitters and drainlayers, and licensed electrical workers. The key changes to the regime include:
  • Giving the LPB Registrar more tools to strengthen the disciplinary process, including publishing details of builders who have been suspended.
  • Establishing a new waterproofing licence class for LBPs completing wet area bathrooms and showers
  • Improving the complaints processes by enabling the Registrars to initiate investigations more easily.

Granny flats building consent exemption on track

The Government is on track to introduce legislation towards the middle of next year to make it easier to build small standalone dwellings without a building consent.

The original proposal set a limit on the size of 60m2, but that’s now been increased to 70m2 following industry consultation. The new regulations, planned to come into effect in mid-2026, have the potential to boost residential building activity significantly.

The government estimates that there will be around 13,000 additional granny flats built over the next decade, but some in the industry believe that number might be a conservative estimate.

Property Investors Federation spokesperson Matt Ball welcomed the move, saying that many of the federation’s members “want to develop and add houses or rooms to their properties, and it can be very slow getting through council consent processes.

"This creates a very simple way of increasing housing supply, which is what we urgently need in New Zealand, and it will help unlock the power of property investors to increase housing and rental supply.”