New rules aimed at protecting homeowners should be formally introduced next year.

The Government's announced plans to require all warranties for new homes three storeys or less, and all renos worth at least $100,000.

Building and Construction Minister Chris Penk admits homeowners will pay a bit more, but it's worth it.

"It's around half of one percent of the cost of a build, so I think that's a lot of of peace of mind - so I think that's a good trade off for the council not having to be involved in ratepayers being on the hook to the extent that they are now."

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• Building a new home? Govt says you will need to buy a warranty