Earthquake-Prone Building reforms

Background

The Government has recently announced significant proposed changes to New Zealand’s earthquake-prone building (EPB) system, moving toward a risk-based approach. The shift is designed to focus regulatory effort where it matters most: on buildings that genuinely pose a risk to life, while easing unnecessary compliance costs for others.

These reforms represent a step toward smarter, risk-based policy. They aim to keep people safe while reducing unnecessary cost burdens for property owners, developers, landlords, and tenants.

For many, this could mean significant savings on developments, remediation costs and the opportunity to focus resources where they matter most, improving safety without overcomplicating compliance.

While the policy is welcome, the transition is not straightforward, and due diligence remains essential. For property owners, developers, and investors, understanding the reforms is crucial. Early conversations with engineers, lawyers, and councils are essential to understand how these changes apply to your building and development plans.

What’s changing

The key goal of the reforms is to target risk rather than apply blanket rules.

Highlights include:

• Focus on genuine risk: Only buildings that pose a life-safety risk in medium and high seismic hazard zones will be captured.

• Assessment criteria updated: Buildings will be classified based on type, location, and seismic risk, replacing the broad New Building Standard (NBS) percentage approach.

• Targeted remediation: Smaller or lower-risk buildings may be removed from the EPB register or subject only to minimal requirements, such as façade securing.

• Extended timelines: Local councils can grant up to 15 years for remediation work, allowing owners more time to plan and fund upgrades.

• Decoupling other upgrades: Earthquake-strengthening obligations are no longer automatically bundled with fire safety or accessibility upgrades.

  
  

Changes by region

The reforms treat certain regions differently based on seismic risk:

Region	Key change
Auckland, Northland, Chatham Islands	Buildings in these areas will generally be removed from the EPB regime due to lower seismic risk. Regulatory obligations under the EPB legislation will largely not apply.
Other regions (medium/high seismic zones)	Buildings will continue to be assessed and may remain subject to EPB requirements. Focus is on concrete buildings 3 storeys or higher and unreinforced masonry buildings.

What to look out for

Although the reforms simplify some obligations, with any regulatory change, the transition is not as straightforward as you think. You should look out for:

1. Check current EPB status: Determine if your building is on the earthquake-prone register and under which criteria.

2. Obtain engineering advice: Structural reports are still critical — a building may no longer be EPB under new rules, but underlying seismic risk remains.

3. Review council records: Confirm any outstanding notices or compliance requirements; transitional arrangements may vary by council.

4. Consider insurance implications: Even if EPB obligations are removed, insurers will still assess risk. Premiums or coverage conditions may change.

5. Assess financial and development impact: Buildings previously requiring extensive strengthening may now avoid significant costs, affecting valuation and project feasibility.

6. Stay updated on legislation: The reforms are still being enacted; final rules may differ, so verify the current legal position before acting.

Different stakeholders should focus on different aspects

Property owners

• Check if your building is currently on the EPB register and under which criteria.

• Obtain up-to-date engineering reports. A building may no longer be classified as EPB, but seismic risk remains.

• Review council records for outstanding notices or compliance requirements.

• Consider implications for insurance, as coverage or premiums may still reflect seismic risk.

Developers

• Assess how the new rules impact project feasibility and development costs.

• Factor in extended remediation deadlines when planning construction or upgrades.

• Engage with engineers and legal advisors early to ensure risk is properly assessed before investment.

Landlords

• Understand your ongoing compliance obligations and potential impacts on lease agreements.

• Communicate with tenants about safety requirements and any planned strengthening work.

• Review insurance policies to ensure coverage aligns with new EPB classifications.

Tenants

• Check whether a building is classified as EPB and how reforms may affect occupancy or safety measures.

• Ask landlords about any planned strengthening or remediation work.

• Consider implications for lease negotiations, particularly in older or high-risk buildings.

What happens next?

The reforms are currently proposed and will need to pass through the legislative process before taking effect. Stakeholders should:

• Monitor the progress of the Building (Earthquake-Prone Building System Reform) Amendment Bill.

• Stay updated on regulations and guidance issued by councils and MBIE.

• Continue consulting engineering and legal experts to ensure compliance during the transition.

We will be closely monitoring developments as the law progresses and will provide updates on key changes and what they mean for property owners, developers, landlords, and tenants.

Disclaimer

This publication reflects the personal views of the author about the subject matters discussed, and is based upon sources reasonably believed to be reliable and accurate. The views of the author do not necessarily reflect the views of Wilson McKay Barristers & Solicitors. No part of the compensation of the author was, is, or will be, directly or indirectly, related to any specific recommendations or views expressed. The information in this publication is solely for information purposes and is not intended to be legal or financial advice. Readers should not act on the information without consulting qualified legal, engineering, or property professionals to consider the specific circumstances of their building or development. The law and regulatory guidance may change, and the reforms discussed are subject to parliamentary approval.