RMA reform to make housing more affordable

Building and Housing Minister Nick Smith has outlined ten major changes the Government plans to include in its second round of Resource Management Act (RMA) reforms

In his annual speech to the Rotary Club of Nelson, Dr Nick Smith said that the RMA is reducing the capacity of housing development by 22%, while adding $30,000 to the cost of an apartment and $15,000 to the cost of a home.

The findings are published in a Treasury commissioned report looking into the impact of planning rules, regulations, uncertainty and delay in residential property development.

Dr Smith said the report shows the RMA has reduced current housing stock by 40,000 and added $30 billion in costs when extrapolated over the past decade.

He cited three main reasons the RMA makes developing new, cheaper housing impossible:

1. It constrains land supply and pushes up section prices.
2. It puts weight on protecting landscape, amenity, natural character and heritage without considering the cost implications.
3. The consultation, submission and appeal rights of neighbours skew the Act in their favour, making it harder for others to build affordable homes.

“Our first phase of RMA reforms made a positive difference in getting consents processed more quickly, but more substantive change was always required,” said Dr Smith. “Our second round of reforms will be pragmatic and moderate. We want to reduce the mountain of plans and rules that make the RMA a barrier to new housing and jobs, but retain the core environmental controls that ensure we keep New Zealand a great place to live.”

Dr Smith said a more detailed announcement about the changes will be made later in the year.

Dr Nick Smith’s ten step RMA overhaul

1. Plan for significant natural hazards.
2. Recognise urban planning.
3. Prioritise housing affordability.
4. Acknowledge importance of infrastructure.
5. Give greater weight to property rights.
6. Introduce national planning templates.
7. Speed up plan-making.
8. Encourage collaborative resolution.
9. Strengthen national tools.
10. Use the internet for simplicity and speed.