Auckland ratepayers still forking out millions on leaky buildings

October 2, 2018

Auckland Council says it's sick of being the last cab off the rank for claims from property owners. (Source: Other)

Ratepayers are continuing to fork out millions of dollars for leaky buildings across Auckland, decades since the problem was first uncovered.

Auckland Council says it's sick of being the last cab off the rank when it comes to litigation.

The government and council’s joint financial assistance package for leaky home claims ended in 2016, so now homeowners are fighting through the courts.

That means Auckland Council is expecting to face claims of up to $319 million in the next ten years - including a blowout to $140 million in 2020 alone.

While they don't expect mass systemic issues like leaky homes to continue forever, Auckland Council consents manager Ian McCormick says they can see other problems.

"For example, a roof membrane that's applied that's failed - there could be issues with quite a lot of quality issues on site.

"One of the things we're seeing that's really significant is a rapid increase in the complexity of work."

That complexity is rising because multi-unit buildings are a lot more complicated.

Since 2008, most of the weather tightness claims have been on townhouses or apartment blocks.

There are 564 dwellings being looked at now with an estimated 835 expecting to come forward over the next few years.

The claims come as Auckland Council consents for multi-unit dwellings outnumber single homes.

The Council would like to see changes to the way building materials are used, and a wider spread of liability at the end of the day.

"All too often people are building to the minimum code," Mr McCormick said.

"If all of the other entities are not available, they've liquidated their assets, they're not available to make a payment, the council will always be sitting there."

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