The construction sector is being freed up to allow more homes to be built more quickly as the Government cuts through some of the red tape of the Building Act.

The Ministry of Business Innovation and Employment received 470 submissions for the overhaul of the act that was introduced in 2004.

Building and Construction Minister Jenny Salesa said the act made building houses slow and expensive.

"We are making progress in tackling the long-term challenge of housing including making high-quality, large-scale manufacturing of prefab houses a reality," Salesa said.

For manufacturers who prove their systems and processes are compliant, there will be a new streamlined nationwide consenting process for prefabricated buildings that will:

* Enable the mass factory production of high quality buildings

* Halves the number of building inspections for factory produced buildings

* Ensure only the location where a prefab house is installed requires a building consent, removing the possible need for two separate consents

• Consenting changes for prefab homes
• Government red tape and building consent processes are one of builders' biggest bugbears

Prefabrication was the future of construction and would help produce high-quality buildings more quickly than traditional building methods,Salesa said.

"In some countries, nearly 80 per cent of newly built homes are prefabricated off site, in New Zealand it's about 10 per cent.

The bill would be introduced early next year.

As part of changes to the act, the Government will also introduce minimum requirements for information about building products.

Roles and responsibilities for manufacturers, suppliers and builders will also be made clearer, to improve accountability.

This would also help councils to process building consents faster, Salesa said.

"Delays in consenting cost a building owner around $1000 for each week of delays.

"A suite of other changes have also been agreed to that will ensure the Building Act is fit for the 21st century, and are part of a wider package of reform that aims to accelerate building including reform of the Resource Management Act," she said.

"The Government is also working to improve occupational regulation within the sector and to address issues of risk, insurance and liability," she said

Announcements are expected next year.