Auckland and Northland building owners are watching the proposed EPB reforms closely, since the Government has signalled that low-seismic zones may be removed from the EPB system altogether.
If that sounds like a free pass is coming, it isn’t. The proposed changes could better be described as regulatory relief, rather than a risk exemption.
What the “exemption” is actually about
Prendos Director and Structural Engineer, Cathy Thomas, believes the new system is trying to align requirements with actual life safety risk, and stop treating all regions like Wellington or Christchurch.
That matters because the current regulatory environment has often forced owners into high-cost assessment and strengthening pathways, even when the building type or region suggests a different approach could be entirely reasonable.
“There’s no pragmatic mindset of ‘your building is only one storey, therefore you don’t really need to do it’” says Cathy. “Everyone has to cover their butts and check everything.”
The reform direction suggests that low-risk building types in low-seismic zones should no longer be swept into the same net. But here’s the catch: the market still cares about seismic risk.
Even if Auckland buildings are no longer regulated under the EPB framework, Cathy is clear that commercial drivers remain.
“Commercial owners will still need an ISA [Initial Seismic Assessment], because lenders and insurance companies want the ISA. It’s a measure of risk for them.”
So “no longer legally required” doesn’t mean “no longer important.” It means owners may have more choice, more control over timing, and more ability to focus spend where it has the highest return. The importance will still remain in terms of asset value, desirability to tenants, and access to affordable finance and insurance.
Will the seismic assessment methodology change?
While the proposed reforms significantly reshape the regulatory framework, they are unlikely to result in a wholesale change to how engineers assess buildings.
“The IEP [Initial Evaluation Procedure] methodology dates back to 2006 and was written by the engineering profession. It’s highly unlikely that’s going to change just because the government asks for it,” says Cathy.
What is expected to change is how that methodology is applied. Rather than being forced into exhaustive, worst-case analysis for every building – regardless of height, location or risk – engineers are likely to be given greater scope to focus on critical vulnerabilities that genuinely affect life safety.
Good advice matters more, not less
Paradoxically, Cathy points out, a less prescriptive system increases the importance of experienced engineering judgement.
“When the system is less prescriptive, judgement matters more. Engineers won’t be forced to analyse everything just to cover themselves – but that also means owners need to be talking to the right people. Experience counts, because you’re making real decisions about what matters for life safety and what doesn’t.”
If engineers are given more discretion, owners need advisors who:
- understand how methodology, regulation, and market expectations interact
- can clearly explain risk in commercial terms
- won’t default to over-conservatism.
The shift owners should welcome: targeted fixes over exhaustive theory
Cathy’s view is that owners may finally be able to stop pouring money into low-value analysis and instead invest in improvements that actually matter – and that add value.
“The advantage for owners is that they can now control the upgrade process with a targeted approach. What they don’t spend on fixing things that really aren’t critical, they can spend on refurbishment – the ‘nice to haves’ – instead.”
That’s the “Auckland advantage” in a nutshell: less forced spend on marginal technical issues, more ability to invest strategically in building performance, leasing outcomes, and overall asset quality – while still addressing real safety risks.
“We already strengthened – what now?”
If you’ve already strengthened (especially to meet TA deadlines or to keep a tenant), it’s very unlikely there will be any recompense for you if the legal framework is relaxed. But that doesn’t mean the spend was wasted.
Strengthening typically delivers very real commercial benefits:
- Lower perceived risk to insurers and banks
- Better leasing prospects (especially to risk-sensitive tenants like Government)
- Improved saleability
- More flexibility for change of use or refurbishment planning
And it improves actual building performance – which is the point.
Cathy also makes a broader point about why reducing the number of “earthquake-prone” designations matters.
“It makes the label more meaningful – rather than having half the buildings being called earthquake-prone.”
If the label becomes more meaningful (because fewer buildings are on the register), then a strengthened building stands out even more to a potential buyer or tenant.
So owners who have invested early may find their building is more resilient and more attractive in the market as the system narrows its focus.
Practical next steps for Auckland and Northland building owners
- Check what your stakeholders require, not just the law. Banks, insurers and major tenants may still need an ISA and a remediation plan – even if the EPB system no longer applies.
- Identify real hazards that still matter. Parapets, façade attachments, brittle diaphragms and serviceability issues can still present real life-safety risk in earthquakes.
- Use targeted strengthening to unlock value. If you need to act, focus on the vulnerabilities that most influence life safety and market confidence, rather than chasing theoretical perfection.
How Prendos can help
We help building owners use the proposed changes intelligently – translating potential regulatory relief into a targeted plan that supports safety and commercial outcomes, and making sure you’re ready for what banks, insurers and tenants will still ask for.
At Prendos, adding value to your assets is our number one priority. If you’d like to speak with our Structural Engineers about how they can help you maximise the value of your investments, call us on 0800 PRENDOS, email [email protected], or fill in the form below and we’ll call you back.
