Government outlines new planning system to unlock housing supply
The Government has set out details of a new planning system that aims to make it easier to build more homes and give property owners greater freedom to use and improve their land.
RMA Reform and Housing Minister Chris Bishop said the proposed changes would remove long-standing barriers that had restricted housing supply and driven up land prices. He argued that the existing planning framework had failed to keep pace with New Zealand’s growth needs.
“For too long, the Resource Management Act 1991 (RMA) has acted as a handbrake on growth and opportunity,” Mr Bishop said – adding that repeated reviews had identified planning restrictions as a core contributor to housing affordability challenges.
Focus on land supply and simpler rules
At the centre of the reforms is the Government’s Going for Housing Growth programme, which aims to create more competitive urban land markets and increase development opportunities. Mr Bishop said the new Planning Bill would ensure land was made available to meet both current and expected demand for housing and business use.
“A specific goal of the new Planning Bill is for the system to enable competitive urban land markets,” he said. National direction, which will follow, is expected to include housing growth targets, rules to make it easier for cities to expand at the urban fringe, greater mixed-use zoning and the removal of minimum floor area and balcony requirements.
Faster consents and more certainty
Mr Bishop said one of the key benefits of the new approach would be simpler and more consistent planning rules nationwide. He pointed to the current system’s complexity, with more than 1,100 different zones across the country.
Standardising zones and applying consistent rules for matters such as building height, site coverage and daylight access would allow developers to use the same designs in different locations, reducing delays and uncertainty, according to Mr Bishop.
Under the proposed system, more activities will be permitted without council consent; consenting processes will be cheaper and more targeted; land will be released faster where it has already been identified for development; and subdivision will be easier in more situations.
What this could mean for buyers and homeowners
Over time, the Government expects the changes to support increased housing supply and greater choice. For buyers and homeowners, a simpler planning system could gradually translate into more development, better use of land and improved affordability.
If you’re working with buyers or homeowners who want help understanding how planning changes could affect their finance options or future property plans, we’d be grateful if you could refer them to us.