Far North building costs to reduce as Government cuts insulation rules

The Government has listened to calls from Far North District councillors to create common-sense insulation rules that will ease costs for the Far North.

Building a home in the Far North may soon get cheaper, with the Government set to ditch a costly insulation requirement and consider the region’s warmer climate under the Building Code.

Earlier this year the Far North District Council wrote to the Minister of Building and Construction Chris Penk and called for H1 insulation requirements in the Far North to be eased.

The council argued that the very northern parts of the district are hotter than the rest of the country and that recent changes to H1 insulation and glazing requirements had unnecessarily added $40,000-$50,000 to the cost of a new build.

Penk agreed and last week announced that the “overly rigid” insulation rules would be removed to ease costs for designers, builders and homeowners.

Penk said he heard the call from the industry that the one-size-fits-all approach was needlessly driving up costs. He said they would be removing the current Schedule Method in favour of more flexible alternatives, cutting approximately $15,000 from the cost of an average new build.

“The Far North District Council made a strong case in its energy-efficiency review submission, highlighting that the region’s warmer climate and need for affordable housing allow for a more tailored approach.

“I’ve heard from the district council that building costs in the Far North are approaching $5000 per square metre. They’re pushing for change to deliver more homes for locals at a reasonable price – an ambition I fully support.

“In my view, recognising Northland’s unique climate with a separate zone is a sensible step that could lower costs and unlock much-needed housing supply.”

He added that the Ministry of Business, Innovation and Employment will consult on any proposed changes to the region’s climate zone designation before final decisions are made, and he looked forward to hearing feedback from the public.