Proposal could add up to $50,000 to cost of new builds, it suggests
ACT New Zealand has slammed the Ministry of Business, Innovation, and Employment’s (MBIE) update to the building code, specifically the proposal to increase minimum insulation levels that could add up to $50,000 to the cost of a new home.
MBIE stated in its building code update 2021 that it prioritises supporting the construction of quality medium and higher density housing, reducing carbon emissions in the sector, and improving the ability of buildings to withstand the future effects of climate change.
“We’ve heard what you’ve told us in previous consultation processes, that insulation values are too low, and we’re ready to make changes. Now, we want you to let us know how far you want these changes to go, how fast you want them to come into force, and how we might progressively phase in these changes,” MBIE said in its report.
“We acknowledge that increasing insulation levels will only take us so far, and other house features also need to be improved. This is just the first step – further changes are coming that will look at more holistic ways to decrease emissions and to ensure New Zealand’s houses are warm enough to live in comfortably and support good health. These changes will be critical to ensure the health, wellbeing, and the environment for future generations and the country as a whole.”
However, ACT New Zealand emphasised that adding up to $50,000 to the cost of new builds with higher insulation standards is “unacceptable” amid the housing crisis in New Zealand.
“All New Zealanders want to live in a warm, dry home, but first we must be able to afford them,” said ACT housing spokesperson Brooke van Velden.
“Housing is already extremely unaffordable. The median house price has increased by $250,000 under this government, putting it out of reach for many New Zealanders.”
Van Velden said the government must prioritise increasing housing supply amid the housing crisis rather than “adding burdensome new regulations.”
“There’s nothing stopping developers from raising standards themselves. The consultation document refers to ‘climate change’ 23 times, but increasing the supply of new housing not once,” she continued.
“Whether it’s banning foreigners, adding new taxes and rental regulations, or trying and failing to build houses themselves – the government has done everything but make it easier for the private sector to build. This is just another sign that Labour’s priorities on housing are backwards.”
