4 Aug 2009

Warranty scheme mooted to combat leaky homes

12:03 pm on 4 August 2009

Building and Construction Minister Maurice Williamson has revealed plans for a warranty scheme to combat leaky homes.

He told the Building Research Association magazine, Build, that the warranty would be sold with a home, creating an additional expense for anyone building or buying it.

But Mr Williamson said it would ultimately reduce costs associated with the red tape local authorities use to protect themselves from liability.

Mr Williamson said the warranty could be offered through insurance companies, or as an extension of Master Builder guarantees.

He also told the magazine the resolution service around leaky homes will be completely overhauled, indicating lawyers won't be a part of it.

The minister said he had no idea of the scale of the problem, estimating about 20,000 houses are affected with a total repair bill of $3.6 billion.