One building industry expert predicts a tightening in the number of building consents issued

New Westpac figures show the building industry may be in for a rough landing.

The report says construction demand will fall due to cheaper house prices and rising interest rates.

The slowdown has already started with new Stats NZ figures, showing building consent numbers fell by seven percent in December last year.

Naylor Love Chief Executive Rick Herd says retail developers are sitting back and waiting for material costs to come down.

He says the government must continue to spend on schools and hospitals to provide the industry with stability over the next few years.