Chris Penk is looking at housing insulation standards. Photo / Alex Burton
Chris Penk is looking at housing insulation standards. Photo / Alex Burton
A possible review of tougher house energy efficiency standards has drawn industry fire against Building and Construction Minister Chris Penk who sought ministry advice to urgently investigate the cost of changes.
Green Building Council chief executive Andrew Eagles said: “It’s unbelievably shortsighted and goes against global best practice for housing. This is effectively ripping insulation out of children’s homes.”
Future generations would be sentenced to a life of cold housing if standards were reduced, Eagles said today.
Penk has asked the Ministry of Business, Innovation and Employment to “urgently investigate” the cost of changes to insulation standards, saying houses were costing up to $50,000 extra.
“Builders frequently raise concerns with me over the new requirements within clause H1 of the Building Code that they say are adding tens of thousands of dollars on to the cost of a home. There are also frequent reports of moisture and overheating issues that are leading to increased energy usage making the requirements counter-productive,” Penk said.
“In the middle of a housing crisis, while Kiwis are still living in cars and emergency accommodation such as motels, it is critical that we don’t create artificial barriers through well-intended but badly implemented policies.”
But Eagles said New Zealand could be cutting back to standards “decades out of date compared to the OECD and this goes against the advice of officials and all the sector that supported H1″.
Industry entities that backed the H1 standard included the Construction Industry Council, Certified Builders, Master Builders, Community Housing Aotearoa, the Building Industry Federation, Institute of Architects and BRANZ, Eagles said.
More than 90 per cent of those who responded to consultation over H1 had backed it, he said.
But Penk responded to critics saying many Kiwis were dismayed by the cost of housing having risen so steeply in the past decade. Many within a single generation had been shut out and they want something done about it.
Andrew Eagles, chief executive of the New Zealand Green Building Council. Photo / NZGBC
“A number of them want to have the choice to pay the extra, say $20,000 at the modest end of the scale or not, as they decide. There is considerable scepticism about vested interests pushing up prices, which I don’t think is the motivation for most people advocating for mandating ever-higher standards. But the frustration is real and deserves consideration not dismissal,” Penk said.
“I have listened carefully to many different builders about huge additional costs. Between them, they have collectively built thousands upon thousands of houses, which qualifies them more than most on the subject. If you have built houses pre- and post- these latest H1 requirements and are prepared to share the respective costs, I would be genuinely grateful. That would allow me to compare with the figures provided by those telling me about the additional costs they have seen.”
Construction sector advisor Mike Blackburn said he could attest to the additional costs from the new H1 requirements.
“Most builders that I have spoken to on this confirm the $35,000 to $50,000 increase in building costs. These costs are passed on to the homeowner. What I’ve never seen is any verified cost with regard to the reduction in heating costs...but a lot of estimated figures. Having said this...houses being too warm is something new.”
Andrew Crosby of Xpect Property Development backs Penk’s call for a review and said higher insulation standards were “a complete waste of time in Auckland and Tauranga”.
The H1 standard had led to cost increases of $10,000 for an apartment, $15,000 for a terrace house and $30,000 for a house, Crosby estimated.
Eagles wrote to Penk yesterday citing a possible review “of the successful H1 insulation changes [5th edition] that came into effect in 2023.
“We believe these changes were an important step towards improving New Zealand’s homes, the health and comfort of thousands of Kiwi families, and a key lever in reducing energy use and winter peaks. We wish to address the concern raised about the new standards, and to propose a way forward ensure our regulatory system delivers for the sector, New Zealanders, and our climate targets,” Eagles told Penk.
Concerns around cost were often born out of a lack of knowledge and poor implementation of H1 standards, Eagles said.
Research showed the major benefits H1 insulation standards have for homeowners and reducing emissions.
“There is overwhelming support from the industry to maintain these standards. Any rollback of H1 standards will create considerable uncertainty for industry and the supply chain who have invested in meeting them,” Eagles wrote. “We recommend any future review focus on the implementation of H1 using modelling, rather than a reliance on the schedule method for compliance. We recommend an industry-Government partnership to support future standards and ensure they’re fit for our sector and our climate obligations.”
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
