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Research and Policy

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• Online version - New Zealand Housing Strategy
  • Online version - New Zealand Housing Strategy - Foreword
  • Building the Future
  • Programme of Action
  • Area 1 - Sustainable Housing Supply
  • Area 2 - Assistance and Affordability
  • Area 3 - Homeownership
  • Area 4 - Private Rental Sector
  • Area 5 - Housing Quality
  • Area 6 - Sector Capability
  • Area 7 - Meeting Diverse Needs
  • Appendices - Principles
  • Appendices - Glossary and Acronyms

Research and Policy

Area 6 - Sector Capability

This area focuses on strengthening the housing sector's ability to grow by providing a strong regulatory framework, trade training, research and other initiatives to position the sector to better respond to present and future needs.

Government's role in helping to strengthen the housing sector includes encouraging the provision of training and education programmes for building and housing management.

Research looking at future capacity and capability needs in the industry is also, in part, the role of government. A forthcoming CHRANZ research project investigating the future of housing in New Zealand will help inform further policy development.

Improving the competency and skills of those in the building sector will add to industry capabilityy and housing quality. Good progress is being made towards improving training and overcoming skill shortages in the construction sector.

The residential construction sector has increased its workforce to meet building work in the pipeline. The Household Labour Force Survey shows that employment in the wider construction sector rose by nearly 40,000 jobs between 2001 and 2005. In spite of this, there are clear shortages in some trades and localities that are reflected in delays and rising building costs. There is also an ageing workforce in some trades.

The Industry Training Strategy, in partnership with private industry, is well on the way to achieving the target of 150,000 workers in training (across all industries) by 2005. Expansion of the Modern Apprenticeships Programme announced in 2004 injected an additional $8.9 million over four years. As of December 2004, over 1000 apprenticeships were in the building and construction sector.

Once New Zealand has a reasonably-sized third sector, consideration will need to be given to a housing management qualification and programme to train housing managers.

"Industry training in general needs greater emphasis. It is of little value having a performance based building code if those who are responsible for creation and control of the built environment in the consequent regime are limited to an understanding of 'Approved Solutions' and how-to manuals. If we are to have innovative approaches to our housing, we need innovative realisation not bound by bureaucracy…"

Government impacts directly and indirectly on the housing of all New Zealand households by setting the general institutional, financial and regulatory frameworks governing housing markets, quality standards, planning and development.

The Department of Building and Housing was established in November 2004, following a review that concluded that building and housing regulatory and dispute resolution functions were spread across too many departments. There is now a single agency providing a 'one-stop-shop' for regulatory issues and standards affecting building, housing and construction, dispute resolution, occupational licensing, public information, education and consumer advice. Consultation demonstrated support for the Department's establishment from those stakeholders who had experienced the previously fragmented functions.

Regulatory frameworks are being strengthened through the Building Act 2004 and reviews of the Residential Tenancies Act 1986, the Building Code and the Unit Titles Act 1972. The latter review will consider whether body corporate structures need adjusting as a result of the growth in apartments as a form of housing.

Government is conscious of the need to ensure alignment within the overall regulatory framework affecting housing supply (the Resource Management Act 1991, the Building Act 2004, the Unit Titles Act 1972 and the Real Estate Agents Act 1976). Consideration will be given to the operation of the Building Act 2004 alongside the Resource Management Act 1991 to determine the impact of their combined operation on urban and property design, as well as the volume of supply. The impact of the regulatory framework in providing incentives or barriers that affect developer behaviour is also important.

Skill and labour constraints faced by local authorities and the building industry are of particular interest in light of the Building Act 2004 and the Building Code review, which may (in the short-term at least) place additional strain on industry and local government capacity and upward pressure on building costs.

Central government is providing support for local government by developing guidance for local authorities on carrying out and enforcing the Building Act 2004 changes.

While people working in the housing sector endorsed the view that a collaborative approach is essential to make the Strategy's vision a reality, they cautioned that sector capability would require further strengthening. This need to strengthen the sector's capability was also identified during work on the New Zealand Urban Design Protocol.

Some of the required growth in housing sector capability will come from businesses investing in training or new technology, community-based organisations improving their own skills and networks, and other non-government initiatives. Alongside that activity, constructive engagement between industry and government will be essential for training initiatives. Such engagement with industry is envisaged under Government's medium term Skill and Labour Strategy, and the Seasonal Labour Strategy, which consider ways to address shortages in identified industries including construction.

Work under the New Zealand Urban Design Protocol includes the Urban Design Champions Programme to provide shared learning and networking for design champions (a staff member in each signatory agency). Continuing professional development training for urban design is underway for architects, planners, landscape architects, engineers and surveyors.

Government is steadily improving the regulatory environment. The Building Act 2004 provides for the licensing of building practitioners, and requires that critical building work is either undertaken or supervised by Licensed Building Practitioners from 2009. Licensed Building Practitioners will be registered and required to demonstrate that they have the skills and competencies necessary to do or supervise critical building work.

The Act also requires that territorial authorities be accredited to perform the functions of building consent authorities. This will require them to demonstrate standards in respect of their systems and processes, and the skills and competencies necessary to administer the Act. This will result in increased demand for education and training for tradespeople and building control officers.

Tertiary and government sectors and other research organisations already make a significant contribution to the housing sector's knowledge. Organisations such as Otago University's Wellington School of Medicine, the Massey University Real Estate Analysis Unit, the Building Research Association of New Zealand (BRANZ), the New Zealand Institute, and CHRANZ all generate important information on aspects of housing and building.

Examples of recent research include the Wellington School of Medicine's applied research into the links between insulation, energy efficiency and health, the BRANZ weathertightness research programme, and the CHRANZ Housing Costs and Affordability research (June 2004).

Over the coming 10 years, we expect a wider range of housing and building-related research will be carried out, including a greater emphasis on the social and economic roles of housing. The need for more targeted research into urban issues is being considered through work under the Urban Affairs portfolio.

The changes introduced under the Building Act 2004 broaden the regulatory environment. The balance between improving the regulatory environment without unduly increasing transaction or compliance costs will be important during implementation. Over the medium term, private and public research in the sector is expected to be more coordinated.

Work to improve the sector's skill base and knowledge will cover trade training and the regulatory framework.

In the short term, the emphasis will be on:

• implementing the Building Act 2004, including licensing and accreditation requirements for licensed building practitioners and building consent authorities, and associated training, guidance and standards development
• reviewing the Residential Tenancies Act 1986 and the Unit Titles Act 1972
• analysing recent events in the property market, including the effectiveness of the supply-side response, to identify any particular issues or constraints
• exploring the workforce accommodation difficulties experienced in some localities
• researching the causes of the decline in homeownership and assessing its implications
• further developing housing research capability across the government and non-government sectors.

In the medium to long term, emphasis will be given to:

• providing opportunities for tenant participation in the management of social housing
• futures research and scenario planning to position the sector to respond to future trends.

Government initiatives to develop the capacity and capability of the housing sector are outlined in the table on the following page.

Supporting initiatives within Government's sector capability work programme are outlined in the table opposite.