Report addresses roadblocks to housing affordability

MEDIA RELEASE

12.04.2012

Report addresses roadblocks to housing affordability

A Productivity Commission report on housing affordability in New Zealand has gained a vote of support from Property Council for putting forward recommendations that aim to reduce roadblocks and make the dream of home ownership a reality for thousands of young New Zealanders.

Property Council chief executive Connal Townsend said the lack of affordable housing is a major issue for most would-be home buyers, and the Commission’s report has addressed this issue.

“There is no debating the fact that the pressure on property prices needs to be resolved if we want to give young New Zealanders the opportunity to realise the Kiwi dream of owning their own home,” said Mr Townsend. “As the report rightly points out, we should be creating opportunities, not discouraging the market because of a lack of availability, high prices and regulatory barriers.”

“We are further encouraged that the Commission has accepted Property Council’s view that an evidential policy for land development is required, and that significant tracts of greenfields and brownfield land is required to get the market ready for development.

“Property Council supports the recommendation to immediately release new land for residential development. Opportunities to reduce the housing crisis need to be realised, which means building out, building up and reinvigorating brownfields sites.”

The Commission’s report also rightly criticises the local government sector’s stewardship of development contributions, said Mr Townsend.

“The days of operating development contribution policies without the possibility of a merit-based legal challenge are coming to an end. The Commission has accepted that territorial authorities have not necessarily been good practitioners of their powers as set down in the Local Government Act.

“The Commission has proposed a statutory process that would allow for development contributions to be challenged. But it also noted that the law may need to be amended to provide for merit-based appeals to either the District or Environment Court, and set a three-year timetable for reviewing that option.

“This is a good start, although we believe, a merit-based appeal mechanism through the Environment Court should apply right now. The local government sector’s track record for abusing its powers relating to development contributions means a law-change to appeal this overcharging behaviour is long overdue.

“Property Council is pleased the report has picked up on many of the issues hampering development, growth and housing affordability in New Zealand, and we are hopeful that this is a step in the right direction towards resolving these issues.”

ENDS

© Scoop Media