Under the Building (Earthquake-prone Buildings) Amendment Bill, local councils will have five years to assess whether buildings are earthquake-prone. Owners then have 15 years to bring them up to standard.

The Property Council said too much time was passing and uncertainty was increasing.

It said it was paramount that Government stepped in to address affordability concerns associated with undertaking this strengthening work. If not, it said businesses and local communities could suffer.

Property Council chief executive Connal Townsend said the costs for undertaking strengthening work are substantial and it is likely many building owners will struggle to afford them.

“This will inevitably result in the closure of buildings, the loss of premises, particularly for small businesses, job losses, and the flight of capital from local communities across New Zealand,” he said.

Property Council is also concerned around local authorities’ resources or capacity to undertake the initial assessments.

Townsend said inaccurate assessments could result in dire consequences for building owners, for example, if it leads to a loss of tenants.

“If strengthening costs are uneconomic or unaffordable, and buildings are abandoned as a result, ratings bases will drop as will the viability of towns and cities,” he said.

The Property Council strongly advocates for changes to the current tax regime along with a suite of other appropriate measures to mitigate the impacts of the affordability issues.

Currently, there is no level playing field in the tax regime for undertaking strengthening works – the costs are not tax deductible and they do not qualify for depreciation - nor do strengthening works necessarily enable building owners to increase rents.