Property Institute supports directive to open up land

Property Institute of New Zealand Chief Executive, Ashley Church, has come out in support of today's move, by Housing Minister Nick Smith, to require Councils to open up enough later to cater for the growth in our fastest growing centres - but has cautioned that the move is just one of many steps that will need to be taken if house price inflation is to be reduced over time

Earlier today Mr Smith released a new national policy statement (NPS) which he said sent a "very clear directive" to urban councils that they had to provide sufficient capacity for new housing in line with projected growth.

In supporting the move Mr Church said that Councils which have been dragging their feet on this issue for a mixture of reasons related to ideology and cost will "no longer be able to hold cities to ransom".

"Councillors who are ideologically opposed to opening up land because of their personal beliefs will no longer be able to impose their worldview on ratepayers and house buyers".

"Likewise, Councils which have used the cost of infrastructure as an excuse not to open up green-fields will now need to look more carefully at their spending priorities and may need to move a few vanity projects further down the list".

Mr Church, who is a former City Councillor himself, having spent 3 terms on the Napier City Council between 1989 and 1998, said he understood the spending pressures that Councils were under but noted that urban growth brings a payback in the form of additional rates and would be good for cities in the medium term.

"Councils need to see infrastructural spending as an investment rather than a burden".

Mr Church also cautioned that freeing up land would not bring down house prices - but agreed that it may be a factor in slowing down the rate at which house prices increase.

"Anything which increases land supply and enables the building of more homes will help to get those increases under control".

ENDS

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