Getting on with building consents

New housing law promises to deliver tens of thousands of new homes.

The Housing Accords and Special Housing Areas Bill, which gives the Government the authority to free up land for housing, passed its third reading by 63 votes to 56 in September.

The new law is the centrepiece of Housing Minister Nick Smith’s measures to beat the shortage currently forcing up the price of New Zealand homes, particularly in Auckland. It will allow the Ministry to create special housing areas, override council if necessary and fast track development consent processes.

“The game changer in this new law is the unblocking of the constipated planning system,” said Dr Smith. “It will enable plan changes and resource consents to be processed simultaneously and over-ride Auckland’s Metropolitan Urban Limit. It will enable low-rise greenfield developments to be consented in six months, when they previously took three years, and low-rise brownfield developments to be consented in three months, when they previously took a year.”

Dr Smith says his preference is to work with local authorities, with the Auckland Housing Accord the first to be recognised under the new Act. It will enable Auckland Council to get on and consent the 39,000 least contentious homes of the 400,000 identified in its draft Unitary Plan, rather than waiting three years for it to become operative.

“The Special Housing Areas and Accords legislations is about freeing up land from the constipated planning system, so that we can get reasonably priced sections to build reasonably priced houses on – Dr Nick Smith

The Government is also having discussions with other councils in high-cost housing areas on how the new law can assist in addressing housing supply and affordability issues in their communities.

“All evidence shows that the increase in housing costs is in the cost of the section and raw land,” said Dr Smith. “The Special Housing Areas and Accords legislation is about freeing up land, so that we can get reasonably priced sections to build reasonably priced houses on.”

While the preference is to get this work done in partnership with councils, the bill will allow the Government to get on with the job if councils stand in the way of delivering an increased supply of affordable housing.

“The new initiatives in this law are just part of the Government’s substantive programme on housing affordability,” says Smith. “We also have work under way to reduce infrastructure costs on sections, address the costs of building materials, improve productivity in the building industry, and reduce compliance costs.