The National Home Builders Registration Council was established in terms of the Housing Consumer Protection Measures Act, 1998 (Act No. 95 of 1998). The Council is mainly established to protect the interest of housing consumers, and to regulate the home building industry.

Before the commencement of the Housing Consumer Protection Measures Act, 1998 (Act No. 95 1998) a National Home Builders Registration Council (Pty) Ltd was established as a section 21 non-profit making company. It's main objective was to promote the common interests of persons occupied in the business or profession of home building, through the regulation of the home building industry. The section 21 company, placed little emphasis on the housing consumer, but the Act explicitly protects housing consumers.