The Government's attempts to cool the housing market may have pushed up building prices

The brightline test was extended to ten years for old builds in March - in a bid to encourage new developments.

Meanwhile - a CoreLogic report's found construction costs surged 1.3 per cent in the first three months of 2021.

Chief Property Economist Kelvin Davidson says the law changes will ramp up construction demand even more.

He says it will worsen capacity issues in the sector and push up prices as more people take on a new build.