New Zealand is proposing changes to its earthquake-prone building (EPB) regulations through the Building (Earthquake-prone Building System Reform) Amendment Bill.

Current System 

The current system, introduced in 2017 under the Building Act 2004, uses the New Building Standard (%NBS) to assess risk and requires buildings under 34% NBS to be strengthened or demolished.

District Councils are responsible for identifying these buildings, notifying owners and enforcing remediation within prescribed deadlines. It is the landlord’s responsibility to produce engineering reports when required by local council and ensure that works are completed within these deadlines. If this does not occur the landlord is liable for a fine not exceeding $200,000.

Buildings that are considered high risk to people’s lives, or critical to recovery in the event of an emergency, are considered priority buildings and must have their seismic work completed in half the time. To date, more than 8,000 buildings have been classified as earthquake-prone.  

However, the system has faced major challenges. Remediation can be disruptive and unaffordable for owners, and confusion about the %NBS rating has led to some buildings being vacated or upgraded unnecessarily. Some buildings have been caught by the rules that were never intended to be, and enforcement has been costly and difficult for territorial authorities. 

Key Proposed Changes: 

The proposed amendments are designed to simplify the process while reducing the financial burden on landlords. This will be achieved through the following key changes:

  • Removal of %NBS ratings: The New Building Standard will be removed. Instead, the system will look at the type of building and its location, with new EPB standard focusing only on buildings that pose a more substantive risk to life in medium and high seismic zones.
  • Reclassification of Regions: Auckland, Northland, and the Chatham Islands will be removed from the EPB system due to low seismic risk. Coastal Otago (including Dunedin) will be reclassified as a medium seismic hazard area. Both Waipā and the Waikato will also be classified as medium seismic hazard areas.
  • Automatic EPBs: Unreinforced masonry buildings with unsecured façades, and concrete buildings with three or more storeys, will be automatically classified as EPBs in the relevant seismic zones.
  • Targeted, risk-based remediation options: Remediation requirements will be more flexible and based on risk, with owners having four options available (depending on building type and location):
    • Simply remaining on the public EPB register
    • Façade securing
    • Targeted retrofit
    • Full retrofit
  • Narrower definition of “priority buildings”: Only reinforced masonry elements that could fall onto busy public areas, and buildings that could block emergency routes, will being classified as a priority buildings.
  • Narrowing of “identify at any time” pathway: Councils will now only be able to use this provision when a building was built after 1976 and is a three storey or more building of heavy construction in a medium or high seismic zone. Moreover, they will now also require the authority of the MBIE Chief Executive.
  • Greater flexibility: Councils will be able to grant extensions of up to 15 years for remediation deadlines (including for owners whose deadlines have already expired). Seismic work will no longer automatically trigger fire safety or disability access upgrades where the work is limited to seismic remediation.

Expected Impact:

These changes are expected to remove about 55% of current EPBs from the system (approximately 2,900 buildings). A further 1,440 buildings will be addressed through more cost-effective remediation requirements, and around 840 buildings located in small and rural towns will not have any remediation requirements (though some may remain on the EPB register). This will only leave around 80 buildings requiring a full retrofit, due to the risk they pose. 

The government’s goal is to focus on buildings that pose a genuine risk to life in earthquakes while reducing compliance costs by an estimated $8.2 billion. 

While these changes are not yet law, the Bill has passed its first reading in Parliament and will now go to the Transport and Infrastructure Select Committee. Select Committee consideration will include public submissions, which have now closed , and is expected to run for at least four months. The Bill is expected to be passed before the 2026 election.

While the reforms are not yet law, the proposed changes could materially affect owners, landlords, and tenants of buildings currently classified as earthquake-prone. If you are considering seismic strengthening, lease negotiations, or property transactions, we recommend seeking tailored advice. Our team can help you understand how the proposed reforms may apply to your specific building and assist with planning next steps as the Bill progresses through Parliament.