Property

Funding lack puts apartments at risk

Safety should come first in apartment buildings but a lack of funding could see owners avoiding crucial building inspections, a body corporate watchdog group is warning.

Thursday, June 29th 2017

The devastating Grenfell Tower fire in London has left local governments worldwide scrambling to find out if apartment buildings in their realm have aluminium cladding with a combustible plastic core.

In New Zealand, the search for such cladding is now on – and, so far, two buildings in Auckland have been discovered to have flammable cladding on their exterior.

Given widespread use of such products in Australia, it is likely that many more New Zealand buildings will be found to have flammable cladding.

Strata Community Association (NZ) president Joanne Barreto said this is a worry because, currently, owners are solely responsible for rectifying defective buildings, although liable parties could be forced to contribute.

“Safety must come first in the minds of owners, but the fact of the matter is that huge financial factors have seen it become a secondary priority.”

This has left SCANZ with concerns that a lack of funding could see owners avoid crucial building inspections – despite fears about the possible use of flammable cladding.

Barreto said that as owners play no role in the construction of the building they buy into, it is grossly unfair that they have to foot the bill for defects when discovered.

“The spread of non-conforming building products is something which was caused, at least in part, by regulatory failure at multiple levels, and to our mind that’s where financial support should be coming from in the future.

“For the sake of owners nationwide, we are imploring the New Zealand government to arrange for urgent discussions on this matter.”

She added that, in order to effectively address the problem, better regulation of the construction sector and supply chain should also be clear priorities.

But Apartment Specialists director Andrew Murray said there has been no official mention of body corps having to proactively organise building checks themselves.

Rather it’s a matter of waiting for councils to do it, he said.

“If a building does turn out to have flammable cladding, it would be very expensive for that building to be reclad.

“It would be interesting to know whether if it came down to it, the council in question would have to pay for the recladding themselves.”

Murray said he understood that, to date, 21 buildings in Auckland have been checked for flammable cladding.

“It is interesting that two have been found to have the cladding and both of those buildings are currently being reclad.”

When it comes to apartment building fire safety there are many different safety considerations besides the cladding, he added.

Read more:

Shake-up for apartment laws 

Getting to grips with body corporates 

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
TSB Special 6.75
Westpac Special 6.75
China Construction Bank 6.75
ASB Bank 6.75
ICBC 6.75
AIA - Go Home Loans 6.75
Kiwibank Special 6.79
Co-operative Bank - Owner Occ 6.79
ANZ Special 6.79
ASB Bank 6.39
Westpac Special 6.39
AIA - Go Home Loans 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.