A $5000 rates rebate for those building their first home or apartment in Wellington has been saved from the chopping block, despite many considering the policy to be a "fizzer".
Wellington City Council introduced the remission in 2018, but the uptake has been low with only 130 successful applications over two years.
The remission has been available to those building their first home or apartment in Wellington, or purchasing a newly built home or apartment off plans.
Council officers recommended axing the offer, noting the low uptake and that the remission alone did not drive the appetite for newbuilds.
"Affordability of new housing relies on multiple factors, such as market and regulatory conditions, interest rates, borrowing capacity or affordability of insurance," officers wrote in a report outlining the council's revised 2020/21 draft Annual Plan in response to Covid-19.
They also noted the rates shortfall created by the remission was redistributed to the remaining residential ratepayers, some of whom would be more financially disadvantaged than the remission applicants.