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More than 40,000 new homes were consented in the year to June, pointing to a “positive outlook” for the sector, says Building and Construction Minister Chris Penk.
“This is the first time since 2023 new home consents have exceeded that mark and are up 19 per cent on the last year with strong increases across housing types, including standalone homes, townhouses and retirement villages.
“This is a significant turnaround for a sector that has faced some challenging conditions over recent years following a decline in building activity that began in 2022.
“More consents mean more building, more jobs and more opportunities for economic growth.”
The results, released by Stats NZ, follow recent SEEK data showing demand for construction workers increased 35.1 per cent compared with a year ago, making construction the fastest-growing industry for job advertisements, says Penk.
“This data is encouraging to see, and this National-led government is committed to continue fixing the basics and building the future.
“We’re focused on building the foundations for growth by cutting restrictive red tape, setting consistent and clear rules, and delivering meaningful reform to enable industry to build the homes we need.”
Penk points to government action to:
- Provide builders and homeowners more choice by allowing the use of tens of thousands of trusted overseas building products.
- Introduce a mandatory building inspection target of 80 per cent of inspections in three working days.
- Increase competition by making it easier for private building consent authorities to compete with councils.
Practical changes to further confidence in the sector and boost activity include embarking on the most significant reform of the building system in a generation, Penk says.
“We have introduced legislation that will replace joint and several liability with proportionate liability, meaning parties will be responsible for the work they actually carry out, while strengthening homeowner protections through mandatory home warranties and professional indemnity insurance.
“The legislation will also enable building consent authorities to voluntarily consolidate their functions improving consistency across the country and introduce a fast-track 10-working-day consent pathway for new homes incorporating solar generation or other sustainable features.”
