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Home / Business

Study blames 'over-regulation' for house prices

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
27 Jan, 2015 11:09 PM2 mins to read

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The study from Registered Master Builders and the Construction Strategy Group, funded by the BRANZ research levy, found what it termed over-regulation in the sector. Photo / Paul Escort.

The study from Registered Master Builders and the Construction Strategy Group, funded by the BRANZ research levy, found what it termed over-regulation in the sector. Photo / Paul Escort.

A new study out on the damaging impact of regulations on housing affordability found sky-high price rises and recommends severely restricting council planners' powers.

The study from Registered Master Builders and the Construction Strategy Group, funded by the BRANZ research levy, found what it termed over-regulation in the sector and it made many recommendations.

"The cost of providing housing is soaring. In the last 15 years, the cost of delivering a standardised new house has risen 110 per cent compared with overall cost of living rises of 44 percent," the study said.

It recommends the Government specifying and limiting the authority of council planners and wants councils to be forced to explicitly include housing affordability impacts in defining the desired character of neighbourhoods.

"A number of recommendations are proposed. These include reducing over-regulation by Central Government specifying and limiting the authority of council planners and freeing up the market," the study said.

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It also wants housing designers and builders to be more diligent in complying with District Plan requirements "and not using councils as their review process" and calls on the Government to standardise conditions which trigger a resource consent requirement.

"The most costly challenges include subjective town planning requirements for subdivisions, when a resource consent is required, or changes to regulation without determining whether the benefits do indeed outweigh the costs," it said.

Little has changed since the Productivity Commission's 2011 study and recommendations on housing affordability, the study said.

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Mobile users click here to read the study's executive summary.

The Impact of Regulation on Housing Affordability Exec Summary (PDF) The Impact of Regulation on Housing Affordability Exec Summary (Text)

Discover more

New Zealand|politics

Len Brown joins house-hunting fray

28 Jan 04:00 PM
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Malcolm Rands: Housing with emphasis on homeliness

29 Jan 08:30 PM
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