New Earthquake-Prone Building Rules Aim to Cut Costs and Revive Communities

The changes, unveiled by Building and Construction Minister Chris Penk, are expected to save New Zealanders more than $8.2 billion in strengthening and demolition expenses over the coming decades.

The Government has announced sweeping reforms to New Zealand’s earthquake-prone building (EPB) system, promising a fairer and more risk-focused approach that reduces costs for property owners while maintaining public safety. The changes, unveiled by Building and Construction Minister Chris Penk, are expected to save New Zealanders more than $8.2 billion in strengthening and demolition expenses over the coming decades.

A System in Need of Reform

Minister Penk said the existing rules, though well-intentioned, have become a crushing burden on many building owners. Under the current framework, strengthening costs often run into hundreds of thousands or even millions of dollars, leaving owners unable to afford upgrades. Many buildings have been abandoned, left empty and derelict, posing both safety risks and economic challenges for local communities.

“Cities and regions are losing the businesses, churches, town halls and classrooms that are central to their local economies and community spirit,” Penk said.

Apartment and small business owners have also struggled under the regime, facing years of stress as their most valuable assets became unsaleable.

Key Changes to the EPB Framework

The new approach removes the New Building Standard (NBS) rating system, which has long been criticised as too broad and inconsistent. Under the NBS, an entire building could be classified as earthquake-prone based on its weakest component, leading to disproportionate strengthening requirements.

The refocused EPB system will now apply only to buildings that pose a genuine risk to human life in medium- and high-seismic zones.

Key changes include:

• High-risk buildings targeted: The system will primarily capture concrete buildings three storeys or higher, and those constructed with unreinforced masonry.

• Low-risk regions excluded: Auckland, Northland, and the Chatham Islands will be exempt due to their low seismic risk.

• Small-town exemptions: In towns with fewer than 10,000 residents, unreinforced masonry buildings under three storeys will no longer require remediation or warning notices. Owners will, however, need to secure building façades before removal from the register.

• Removal of costly add-ons: Building owners will no longer be forced to upgrade fire safety systems and disability access simultaneously with seismic work, a requirement that often inflated costs and discouraged essential strengthening.

• Extended remediation deadlines: Local councils will have new powers to grant extensions of up to 15 years, allowing owners more time to fund and plan upgrades.

Supporting Business and Community Revival

Minister Penk stressed that the reforms aim to balance life safety with economic and community resilience. By reducing the scope of mandatory strengthening, more buildings can remain in use rather than falling into disrepair or being demolished.

The changes are particularly significant for regional towns, where historic buildings such as churches, schools, and town halls are central to local identity but difficult to affordably repair under the old system.

“Protecting human life remains our top priority. But we also need a fairer balance between costs and the actual risks buildings pose,” Penk said.

Backed by Independent Review

The reforms stem from an independent review led by the Ministry of Business, Innovation and Employment (MBIE), which found that the current system overstated risks for many buildings while creating unreasonable financial hardship. The review’s recommendations focused on creating a system that was both scientifically robust and economically achievable.

Looking Ahead

Ministers are also considering further regulatory relief, including possible reforms to heritage and resource management rules that can complicate or delay building upgrades.

The Government says the refocused EPB system will help ensure buildings are made safe without draining communities of their resources. The result, officials believe, will be thriving regional towns and cities, with stronger, safer, and more vibrant centres.