Govt Unveils New Self-Certification Scheme to Speed Up Home Construction and Reduce Costs

“If we want to grow the economy, lift incomes, create jobs, and build more affordable, quality homes, we need a construction sector that operates at peak efficiency,” Minister Penk said.

The New Zealand Government has announced a major reform initiative in the building and construction sector aimed at reducing the time and cost associated with building affordable homes. Building and Construction Minister Chris Penk has revealed a proposal for a new self-certification scheme that will streamline the building consent process and allow trusted building professionals to self-certify low-risk work. This proposal is a key part of the Government’s strategy to accelerate home construction, drive economic growth, and improve housing accessibility.

“If we want to grow the economy, lift incomes, create jobs, and build more affordable, quality homes, we need a construction sector that operates at peak efficiency,” Minister Penk said. “The current building consent process is meant to protect homeowners, but it has become increasingly cumbersome, delaying projects and adding unnecessary costs.”

The self-certification scheme, which will undergo a comprehensive consultation phase before final policy decisions are made, introduces two main pillars to streamline the process. First, certified professionals—such as plumbers, drainlayers, and builders—will have the option to self-certify their own work on low-risk builds without needing additional inspections, aligning with practices already permitted for electricians and gasfitters. This adjustment is expected to significantly reduce bottlenecks in construction, bringing average build and consent times down from the current 569-day standard, which has hampered housing availability in the face of a national shortage.

The second key pillar allows businesses with strong track records, such as large home-building companies constructing standardized homes, to follow a streamlined consent pathway. Current regulations often require up to ten separate inspections for a single-story home, an approach the Government believes has created an imbalance between oversight and cost-effectiveness.

In addition to reducing inspection requirements, the scheme will introduce strengthened qualification standards for self-certifiers, clear pathways for addressing substandard work, and stricter disciplinary actions against negligent practitioners. According to Penk, these quality safeguards will help maintain high standards while providing a pathway to faster and more affordable home construction.

The Government also aims to adjust liability distribution under this model, relieving councils and ratepayers from sole responsibility for defective work. Instead, licensed builders and accredited companies will take on a greater share of risk, a shift intended to promote higher-quality construction practices.

“We are focused on addressing the housing shortage by cutting through red tape and fostering an environment where capable professionals can help deliver quality homes at an affordable rate,” said Penk. “This initiative will allow Building Consent Authorities to focus their resources on more complex projects, where inspections are most needed while ensuring that the quality of low-risk homes is upheld.”

Final decisions on the details of the self-certification scheme, including the potential auditing role of existing Building Consent Authorities, are expected in the new year following input from industry stakeholders and the public. These proposed reforms reflect the Government's ongoing commitment to addressing New Zealand's housing crisis, promoting greater efficiency in the construction sector, and ultimately helping more New Zealanders achieve homeownership.