Higher-density living something Tauranga needs to get used to, developers

Developers say a new Housing Supply Bill backed by Labour and National could hold the key to more housing - faster. Photo / NZME

A proposal to fast-track new builds could provide a major boost to Tauranga's housing supply, a developer says.

However, another warns it would still take a "property cycle correction of biblical proportions" to address the city's "dire" housing crisis.

The comments come after the introduction of a new Housing Supply Bill, backed by both Labour and National, which would cut development red tape to speed up new builds.

The Bill proposes to increase housing supply in Auckland, Hamilton, Tauranga, Wellington and Christchurch by allowing up to three homes of up to three storeys to be built on most sites without resource consent.

Morgan Jones, managing director of development management company Veros, said modelling behind the Bill estimated an additional 3,800 to 8,500 homes in Tauranga would be built between now and 2024 if it passed.

That would be about a 50 per cent increase on what was currently being built, he said.

Veros managing director Morgan Jones. Photo / Supplied

Jones said the housing crisis in Tauranga and Rotorua was creating inequality.

"It's pricing people out of the market, and the cost of housing is now well out of step with wages."

The Bill would help cut what was red tape for small-scale housing developments, he said.

"It won't just help people building three three-storey homes but it will help people build - without consent - a granny flat, a minor dwelling, a duplex or a flat."

"These rules will ensure that we can respond more quickly to our community's housing needs."

However, the amended rules could shock existing homeowners.

"A three-level townhouse building not far from the boundary will mean impacts on loss of light, views, amenity, and will mean overlooking."

"There will be issues for neighbours, but as a country we need to get used to a higher density of living in our major cities."

Jones said the Bill was not dramatically different from Tauranga City Council's Plan Change 26 Housing Choice - which proposes changes to the city plan to enable townhouses, duplexes, terrace houses and small apartments to be built in some Tauranga suburbs.

The Bill did go further by removing the council from the process and not requiring resource consent.

"The setbacks are smaller, the heights are higher and the overshadowing rules will be more liberal."

Carrus managing director Scott Adams. Photo / NZME

Carrus managing director Scott Adams described Tauranga's housing situation as "dire" and "at crisis point".

"I believe Tauranga lost its ability about seven years ago to be able to match future housing supply to market demand."

"It would take a property cycle correction of biblical proportions to restore a demand/supply equilibrium, and even then the ability to provide a housing product that the average household income could afford to own would be unlikely."

While it was "very early days", Adams said the Bill was designed to strengthen the National Policy Statement for Urban Development.

It also meant Tauranga and Western Bay councils would be able to put forward all future urban growth areas identified to fast-track intensification, he said.

Adams said the Bill would mean increased supply to meet Tauranga's fast-growing population but also that a three-storeyed house could be built within a metre from the boundary shared with a neighbour "that blocks out all-day sun".

"Hopefully, thought and consultation with the development community on design standards are being carried out by the Government."

Classic Builders director Peter Cooney. Photo / NZME

Structure Properties Ltd director Shannon Moyle said more detail was needed to understand the effects of the Bill.

Moyle said the issues with consenting in Tauranga was now affecting the long-term outcomes for "a city with incredible potential".

Classic Builders director Peter Cooney said the cross-party support for the Bill sent a "powerful message" on the issue of housing affordability.

"Resource consents add a lot of time, cost and uncertainty to housing developments - so anything that can be done to minimise that is a good thing."

"This Bill isn't a silver bullet but it will help."

Cooney said any new rules should also be applied to Rotorua because the city's typical section size was larger, therefore infilling was more feasible and the rules would probably have more impact than in Tauranga.

"Rotorua is in urgent need of housing, which is evident from the emergency housing situation in place across the city."

Western Bay of Plenty District Council's resource management manager, Phillip Martelli, said the council was open to assessing all options, including the Bill, to help deliver more homes.

The revised residential rules proposed for future development in Ōmokoroa were in line with what the Government was proposing, he said.

Tauranga City Council general manager of strategy and growth, Christine Jones, said the council was reviewing the Bill and considering what it meant for Tauranga's projects.

"With the housing crisis facing Tauranga, we need to look at all the solutions available to help get more houses in the ground."

"But we need any solution to deliver good urban and housing outcomes, and for the city's infrastructure to be able to cope with it."

Jones said it was working with commissioners to prepare a submission to the Bill.

Rotorua Lakes Council district development deputy chief executive, Jean-Paul Gaston, said the Bill signalled the Government recognised intervention was needed to ensure more homes can be built faster.