Alberta has introduced new legislation making it mandatory for builders to provide warranties for new homes.

Under Bill 5, warranties on new homes would be one year for labour and materials; two years for defective labor or materials; five years for the exterior and 10 years for major structural components.

If passed, the law would cover all new homes built in the province starting in the fall of 2013.

"It does it in a way that makes sure that builders are more accountable but that homes are still affordable," said Municipal Affairs Minister Doug Griffiths.

The government believes the warranty will raise the price of an average home by less than one per cent or about $1,700 to $2,000.

Deron Bilous, the NDP critic for Municipal Affairs, welcomed the new bill. However, he believes the province should also strengthen home inspections.

"This act isn't going to at least at the moment doesn't look like its dealing with home inspections," he said. "Certification of inspectors and and then ensuring that province-wide that there are standards."

The government plans to soon introduce legislation which would increase fines for contractors who don't meet standards