Government's proposal to change the EPB system: What does this mean for property owners?

Introduction

On 29 September 2025, the Government announced a significant proposal to overhaul the Earthquake-Prone Building (EPB) system and introduce new legislation. This change aims to focus regulatory efforts on the most at-risk buildings in high and medium seismic hazard areas. The proposed legislation will move through the parliamentary process, with select committee hearings scheduled for the first half of 2026. This period will allow individuals and organizations to provide feedback on the changes. If the proposals are enacted, an implementation (commencement) date of mid-2027 is anticipated.

What Are the Key Proposed Changes to the EPB Scope?

The Government proposes a reduction in the scope of the EPB system to focus on buildings that present the highest risk. The revised system would primarily cover buildings with higher risk features, such as taller heavy buildings and Unreinforced Masonry (URM) buildings in high and medium seismic hazard areas only. Crucially, areas considered to be of lower seismic hazard—specifically Auckland, Northland, and the Chatham Islands—would be removed from the proposed EPB system entirely.

Will Seismic Assessments Still Be Required?

Yes, seismic assessments using the current New Building Standard (NBS) system will remain a standard practice for non-EPB risk-related purposes, including lending and finance decisions, insurance requirements, leasing and selling, and building alterations or changes of use. Their use is expected to remain commonplace, particularly as the revised EPB system becomes more narrowly focused and covers fewer vulnerable buildings.

However, to decide whether a building is earthquake-prone or not under the new regime, a new, simpler, characteristics-based assessment method would be used. This new method and its accompanying guidelines will be developed as part of the implementation work for the proposed provisions.

What Happens to Buildings Currently EPB but Outside the New Scope?

Buildings that are currently identified as earthquake-prone (less than 34%NBS) but will no longer be regulated under the new system remain structurally vulnerable and still have the potential to collapse during an earthquake. Decisions to address seismic vulnerabilities will remain the responsibility of the building owners. Seismic strengthening would no longer be a regulatory requirement for these buildings. However, other requirements, such as insurance coverage and lending finance, will still be relevant and may necessitate seismic risk mitigation.

What Is the Nature of Strengthening Required Under the New Proposal?

For buildings that do remain within the scope of the revised EPB system, the required strengthening work would be targeted and proportional to the risk. For multi-storey concrete buildings, a targeted retrofit that addresses the worst vulnerabilities would be required, though this would not necessarily correspond to achieving 34%NBS across the whole building.

The most extensive requirement is for multi-storey Unreinforced Masonry (URM) buildings in urban centres, which must undergo a full retrofit addressing all significant building vulnerabilities in addition to façade securing. For multi-storey URM buildings in rural centres and one and two storey URM buildings in urban centres, the requirement is limited to façade and wall securing of walls facing onto public spaces or above adjacent properties.

Finally, for the lowest-risk buildings—one and two storey URM buildings in rural centres—EPB status would only be required to be recorded on the national EPB Register (with no physical notice required), and they can be removed from the register if the owner voluntarily undertakes façade securing.

Conclusion and Next Steps

The proposed changes deliver a significant shift toward a more risk-based, focused regulatory approach. While the EPB scope narrows, property owners must understand that the removal of a regulatory requirement does not eliminate the underlying structural risk. Non-EPB assessments using the NBS system will remain a standard practice for market requirements (including leasing, selling, lending, and insurance), while a new, simpler, characteristics-based method will define future EPB status. These changes are anticipated to commence in mid-2027 if the legislation is passed in 2026. Our team will closely monitor the parliamentary process and provide timely updates.