Government set to review the price of building materials

Source: 1News

A review of the residential building supply market has been commissioned by the Government in a bid to ensure Kiwis have access to fairly priced building materials.

The study will allow the Commerce Commission to investigate factors that affect the supply or acquisition of key building supplies, including those for flooring, roof, walls and insulation, Commerce and Consumer Affairs Minister David Clark said.

Clark said the Government was “looking at how we can lay the foundations for a more competitive building sector”.

“Understanding any market barriers could play a key role in supporting New Zealanders achieve home ownership, so I’m pleased the Commerce Commission will be getting this work underway."

The review comes after the Human Rights Commission announced a national inquiry into New Zealand’s housing crisis in August.

“It’s clear a significant portion of the costs associated with building residential housing is tied to building supplies. As New Zealand’s population has increased over the last decade, residential building consents have more than tripled. Alongside that, current demand for renovations and extensions to existing homes is at the highest it’s been in 15 years,” Clark said.

This is the third market study of its kind in New Zealand after a review of the retail fuel sector 2019.

A study into the retail grocery sector is ongoing, with the final report due in March.

The Commerce Commission will present its final report on residential building supplies in December 2022.