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Home / New Zealand

Relaxing building controls among fixes for Auckland housing crisis

Bernard Orsman
By Bernard Orsman
Auckland Reporter·NZ Herald·
12 Jun, 2017 05:00 PM3 mins to read

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Phil Goff says local and central government need to take a close look at the proposals. Photo / Greg Bowker

Phil Goff says local and central government need to take a close look at the proposals. Photo / Greg Bowker

Auckland's rating system and less stringent building controls could help to ease the city's housing crisis, says a new report.

Developers who make windfall profits from rezoning and infrastructure improvements could pay "value capture" rates.

The city could also move from a capital value to land value rating system to discourage land banking and free up land more quickly for housing.

The ideas are included in the Mayoral Housing Taskforce Report, presented to Mayor Phil Goff yesterday and made public. The taskforce began work early this year.

Auckland has become unaffordable for first home buyers and renters

Phil Goff, Auckland Mayor
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The report, Goff said, set out to tackle the causes and improve on Auckland's quite dramatic housing shortage and affordability issues.

Auckland is growing by 45,000 residents a year and figures released last month show the city is failing dismally to build enough houses to meet the demand and an historic shortfall.

Auckland needs 14,000 new homes a year, but figures show council issued consents for 10,200 homes last year but only built 7200 new homes.

In the 2015 and 2014 years, 6520 and 5550 houses were built respectively.

Goff said the taskforce consisted of people at the "cutting edge of the industry", including developers, builders, bankers, economists, architects and central and local government officials. The city's largest property owner, Housing New Zealand, did not participate.

The mayor and taskforce members stressed there was no "silver bullet" and the report's many recommendations canvassed well-trodden issues, such as building at scale, freeing up land, how to pay for infrastructure and improving the consenting process.

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New ideas included gearing up to build through economic downturns and a building warranty and insurance scheme to move liability away from councils on things like leaky buildings - which have cost Auckland ratepayers $600 million so far - to allow less stringent building controls.

Property Council chief executive Connal Townsend praised the report as "brave and bold", saying it talked about the lumpy nature of the building industry, land supply issues, planning and consenting, and funding and infrastructure in a coherent whole.

The Property Council, he said, supported "value capture" targeted rates because it was more effective than one-off development contributions and spread the cost of the benefits over a period of time.

Property Institute chief executive Ashley Church called the report "an important piece of the jigsaw" with a number of practical and sensible proposals for dealing with the housing shortage.

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Goff showed little enthusiasm for moving from a capital value to land value rating system, saying only it would be investigated. The move would free up more land for housing but lead to winners and losers among ratepayers.

"It is important for central and local government and the industry to analyse and respond to the report's recommendations. Auckland has become unaffordable for first-home buyers and renters.

"Unless we address these problems, [the] housing shortage and unaffordability in Auckland will not only continue to cause serious social pressures, but will also hold back Auckland's and New Zealand's economic growth," Goff said.

The report addresses the role that the Government's $1 billion Housing Infrastructure Fund must play in allowing the council's new Unitary Plan to free up land and provide for infrastructure, and recommends the broadening of revenue sources for council, including road pricing and devolution of funds from central government.

The Government and council last week said they would take a fresh look at tolls on Auckland roads, but said they were years away.

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