RESIDENTIAL
August - September 2021
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his is mainly off the back of affordability pressures, the 40% deposit requirement and extended bright-line test for investors, the tightening of interest deductibility rules, as well as the approval for the Reserve Bank of New Zealand (RBNZ) to look at debt to income restrictions. Reforming the Resource Management Act has been seen as a once in a generation opportunity to improve New Zealand’s ability to deliver more housing. While some are praising the Government for taking action, others say the Government has just squandered that opportunity. “We are concerned that the Bill as it stands will, in some cases, make consenting and development more difficult,” says Property Council New Zealand’s Head of Advocacy, Denise Lee. “It is hard to see how meeting all of the listed environmental outcomes will make the process less bureaucratic and burdensome. We have always favoured bottom lines to both 16 propertyandbuild.com
Will the reformed RMA actually help deliver more housing? The Government has released the first draft of the Natural and Built Environments Act (NBA), one of the proposed laws meant to replace the cumbersome Resource Management Act (RMA) which has stunted New Zealand’s ability to build more houses protect and enhance our natural environment, while simplifying the system to get more developments consented.” Lee says one of Property Council’s key concerns is the lack of mention of development in the purpose section of the Natural and Built Environment Bill. This seems an obvious omission given the Bill’s requirement to support sustainable development.
“New Zealand is simply not building enough houses, quickly enough, and with the quality and innovation needed to service its growing and changing population.” National Party Leader Judith Collins agrees, saying the Government has missed the point. “The whole idea is to make the RMA simpler and easier to deal with. The real risk is that at the
end of this process we end up with something that is more costly, complicated and cumbersome than we already have. “The Government needs to act with much more urgency to cut through our complex planning rules and free up housing supply.” House prices in New Zealand continue to skyrocket, with lack of supply being the chief contributor to this. There is a sense of urgency
