A new home warranty scheme is needed in NZ to prevent a replay of the leaky buildings crisis, according to a lawyer for claimants.

Tim Rainey, a partner at law firm Grimshaw & Co, says a 15-year warranty for homes is the way forward.

“The start of a long-term solution to the problem presented by building defect litigation is the creation of a new home warranty scheme providing the owners of dwelling houses with a warranty in respect of design and construction defects,” he told insuranceNEWS.com.au.

He says the warranty should be for a period of 15 years – not the 10 years under NZ’s Building Act.

“[The warranty] would be provided for the benefit of all subsequent owners of the house and intended to provide the owners with compensation for the losses suffered,” he told insuranceNEWS.com.au. “The cost of the warranty would, for new construction, be met by the initial developer who would pay a fee set by the warranty provider.”

A PricewaterhouseCoopers report estimates 42,000 properties have been affected in the leaky buildings crisis, with the total repair bill hitting $NZ11.3 billion ($8.65 billion).

Weak legislation, poor workmanship and inadequate materials were blamed for the crisis, which mostly affected buildings built in the 1990s.

As well as sustaining water damage, leaky buildings have also been linked to health fears.