National Policy Statement on Urban Development released

This afternoon’s release of the National Policy Statement on Urban Development (NPS-UD) is a step in the right direction, with the Government adopting many of Property Council’s recommendations submitted during consultation.

In support of the Statement, we are calling on politicians to meet in the middle and work together to allow the proposed changes to enable development and rekindle the economy.

The NPS provides a long-term planning framework for Councils to ensure we create well planned and functioning cities. It is hoped to reduce fragmentation and ensure we have enough amenities such as housing, schools, hospitals, business areas to meet the needs of communities and cities in New Zealand. The Councils are now tasked to develop these plans over the next few years.Today’s announcement by Minister Phil Twyford included several notable changes from the previous draft. The most significant were:

  • Tier 1 council* plans are to enable building heights of at least six storeys in areas of high demand or areas that are a walkable distance from existing or planned public transport (noting there are a list of exceptions specified such as heritage, open spaces and many other circumstances)
  • The abolishment of car parking requirements for developers (lending towards a more market-driven approach)
  • Tier 1 and 2 councils** will be required to work collaboratively to produce a ‘Future Development Strategy’ which sets out a long-term vision for accommodating urban growth. 

This is welcome news for the property industry, says Freeman, as the NPS-UD directs councils to encourage intensification and enable development that, in time, could ease the housing shortage and unaffordability issues.

“Good quality planning takes time,” says Freeman. “With the first Future Development Strategies to be developed by 2024 we can’t afford to continually move the goal posts for local authorities, planners and developers.

“If the Government is serious about building our way out of crisis and ensuring New Zealander’s a future of well-planned, fit-for-purpose infrastructure, then the politicians will need to come together and focus on what is best for our communities and cities. Such collaboration will allow the sector to move beyond the never-ending cycle of sole planning stages and into the implementation and delivery of developments that shape cities and enable communities to thrive.

“In practical terms, the NPS-UD will mean that although there may be an ability (from a planning perspective) to intensify cities, the developer would only do so if the numbers stacked up. The market will dictate this feasibility.”

Tier 1 local authorities will have two years to implement intensification policies within the NPS-UD, and Tier 1 and 2 local authorities will have four years to implement the first Future Development Strategy. All local authorities will have 18 months to remove all car parking provisions from their plans. Once we are passed the planning stages, the private sector will have more certainty as to how they can shape the future of New Zealand cities and can shift its focus towards planning, implementation and delivery.

Although the NPS-UD encourages six storey development, in practice, the NPS-UD has a provision allowing for councils to modify the building or density for a number of reasons. For example, to give effect to another National Policy Statement, an area that is subject to a designation or heritage order, to provide alternative low density business use to meet expected demand (i.e. commercial, industrial or retail is more appropriate), or any other matter that makes high density development inappropriate. We expect this will be used widely as a one size fits all approach is unlikely to be appropriate for all local authorities. Allowing local authorities to modify building heights will likely result in better local outcomes being achieved.

Property Council’s submission on the draft NPS-UD called for Future Development Strategies to be compulsory for all medium and high growth councils (rather than solely high growth councils).

“We are pleased to see the Government has taken on board our advice, which will better allow for collaboration and alignment of regional planning across New Zealand”, says Freeman. “Clear planning provides certainty for future development and builds confidence in the sector.”

> To read Property Council’s full submission, click here.
> For further information on the NPS-UD, click here.
> To read Property Council's media release on this issue, click here.

*Tier 1 councils are local authorities located in Auckland, Tauranga, Hamilton, Wellington and Christchurch.
**Tier 2 councils are local authorities located in Whang
ārei, Rotorua, New Plymouth, Napier Hastings, Palmerston North, Nelson Tasman, Queenstown and Dunedin.

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