Source: Property Council New Zealand
Property Council New Zealand has welcomed today’s announcement from the Government, describing the reforms as a pragmatic step toward a more consistent and accountable building system.
Chief Executive Leonie Freeman said the move to replace joint and several liability with a proportionate liability model, alongside enabling voluntary consolidation of Building Consent Authorities (BCAs), addresses long-standing issues that have created cost and delay in the sector.
“Joint and several liability has often left councils as the last man standing. Proportionate liability changes this – a shift that the development community supports,” Freeman said.
“Spreading accountability more fairly across the construction pipeline should ease pressure on councils and provide greater certainty for the market. We expect this will also help reduce the risk-averse behaviour that slows down consenting and drives up costs.”
Freeman noted that Property Council members are prepared to play their part.
“Our members are open to sharing liability if it gives councils greater confidence and improves consistency. The detail around mechanisms such as professional indemnity insurance and home warranties will be important for ensuring clarity.”
On BCA consolidation, Freeman said the change could help remove unnecessary complexity.
“Sixty-six different interpretations of the Building Code create inconsistency and duplication. A regionalised model could help streamline processes, but its success will depend on councils’ willingness to work together.”
Freeman said the reforms build on earlier moves to improve access to new building products.
“Addressing both consenting and liability settings is a step in the right direction. These changes have the potential to remove blockages, reduce costs, and provide a more predictable system for everyone involved in the building process.”
Property Council is the leading advocate for Aotearoa New Zealand’s largest industry – property.
Property Council New Zealand is the one organisation that collectively champions property. We bring together members from all corners of the property ecosystem to advocate for reduced red tape that enables development, encourages investment, and supports our communities to thrive.
Property is New Zealand’s largest industry, making up 15% of economic activity. As a sector, we employ 10% of New Zealand’s workforce and contribute over $50.2 billion to GDP.
A not-for-profit organisation, the Property Council connects over 10,000 property professionals, championing the interests of over 550 member companies.
Our membership is broad and includes some of the largest commercial and residential property owners and developers in New Zealand. The property industry comes together at our local, national and online events, which offer professional development, exceptional networking and access to industry-leading research.
Our members shape the cities and spaces where New Zealanders live, work, play and shop.
