Increasing competition in the building supplies sector won't necessarily result in cheaper homes.

A new Commerce Commission draft report has found there isn't enough competition in the sector, and it's too difficult to get innovative products to market.

Registered Master Builders Association chief executive David Kelly says we need to look more broadly.

He told Mike Hosking regulatory barriers are getting in the way.

Kelly says the consenting system is where a big part of the problem is and needs to be looked at.

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