The Registered Master Builders Federation says the Reserve Bank's clampdown on low deposit loans will result in fewer houses being built.
New rules that came into effect in October this year mean no more than 10% of a retail bank's mortgage lending can be to people with deposits of less than 20%.
The federation's chief executive, Warwick Quinn, told Radio New Zealand's Checkpoint programme on Wednesday that inquiries about building new houses are down by almost 30%.
Mr Quinn says it is likely any drop-off in building consents will be reflected from March or April next year.
A survey for the federation reveals low deposit buyers account for about 15% to 20% of new residential construction, he says.
