In August 2025, the Government announced the biggest reform to New Zealand’s building consent system in two decades. The problem? Councils facing massive liability for building defects have become so risk-averse that the entire consenting system has seized up.
Building and Construction Minister Chris Penk cited the scale of exposure: in one Queenstown case, ratepayers faced potential liability of $160 million for weathertight defects. Had the case not been settled privately, it could have meant rates increases of $300 per household per year for 30 years.
