Rules bad and good for house building

Tough new building rules to be introduced next year will add at least 3 per cent to the cost of building a home but may be a small price to pay for sounder houses.

The changes forced by the 2004 Building Act aim to stamp out the cowboy attitude which contributed to the $1 billion-plus leaky home crisis.

Builders will need to be licensed and councils will need to be accredited under the new system and prove they are competent to do their jobs.

Building Issues Minister Clayton Cosgrove will explain the new regime to the Registered Master Builders Federation in Queenstown tomorrow.

Federation chief executive Pieter Burghout said his industry was in favour of the rule overhaul, although it had issues with some moves.

In changes aimed at eliminating the "she'll be right" attitude to house building, widespread reforms will change the face of the industry.

The new rules will require builders working on structural or weathertight elements of houses to be assessed and found to be competent. Manufacturers who turn out products crucial to house construction will provide certificates to back up their materials.

Mr Burghout welcomed changes to rules governing the housing sector and said the overhaul was overdue, although he wants product certification to be mandatory rather than voluntary.

The changes are partly aimed at preventing leaky buildings, but Mr Burghout said they went further and would give more faith in a sector in which many people had lost confidence, particularly in Auckland.

When the act was announced it was expected to add about 3 per cent to the cost of house construction. But builders say they are in the dark about the impact of licensing requirements and liability insurance, which could push the cost much higher.

Most of the changes are due to come into effect by November next year.