Cowboy builders could be run out of town as a decline in new consents in Rotorua causes construction firms to feel the pinch.
Local developers have noticed a definite slowdown in new homes being built in the last year but some believe good may come of it because it will
mainly affect rogue builders rather than established, qualified builders.
Charles Hubbard of CH Builders said rogue builders were the ones most likely to be hit by the decline.
``It is probably a good thing for qualified builders if it gets rid of some of the cowboys,' he said.
``It's the people without a good client base or who haven't been around long that will go.'
Mr Hubbard said people were staying put and renovating instead of building new houses but he believed the decline would be reversed when interest rates went back down.
But Peter Everest, of Rotorua Property Inspections, said there were people doing building work themselves without sufficient knowledge or employing ``cowboys' who took shortcuts.
``We go to both new and old houses and see a lot of things that are not being done adequately,' he said. The building assessor and inspector listed inadequate protection against moisture and people removing walls or digging around footings without realising the consequences as common problems.
``There are people out there who think a tube of sealant fixes everything,' Mr Everest said of the trade.
He was not sure new licensing laws due to become compulsory in 2010 would do much to stop it, saying that ``remains to be seen'.
Urbo Homes partner Jeremy Malings says some firms could go out of business as a result of the recent local and national decline in new building consents, just as the previous boom saw the number of construction companies increase. He says it's ``all about supply and demand' and the demand just isn't there right now.
``With all we are hearing about in the press about recession, it's only natural that people are being a bit more cautious. But, saying that, we are still fairly busy with new homes and alterations.'
In his experience, current ``new-builds' were generally for people who had saved up for many years and could afford to do it properly.
Generation Developments' chief executive Kevin Atkinson said it appeared the downward trend in building consents was already reversing. ``We noticed it straight away after interest rates dropped in July. People feel it's the right time to buy.'
