Wellington landbankers put on notice

Wellington Mayor Justin Lester said landbankers could soon face penalties. File photo/Mark Mitchell

Wellington's mayor wants more houses built, and says landbankers are the ones standing in the way.

In his State of the City breakfast this morning, Justin Lester said there was undeveloped land at the city fringes that could fit 2750 new homes.

But 90 per cent of that land was owned by just two groups, which weren't releasing it for development.

Lester said the council had tried using carrots, and now was ready to bring in the stick.

"The aim is to have 1000 new homes consented each year, for the next 10 years.

"That will meet the growth demand, it will give us sustainable supply, it will also keep a dampener on house price inflation."

He said there was land available to the north and west of Wellington, particularly around Churton Park and Newlands.

"But it's largely held by two owners, and we need to free that land up faster."

Lester didn't name the owners of the land.

The council has faced a problem with building consents being issued, but then nothing being built.

Lester said it was frustrating.

"In the past we've provided carrots, to encourage people to consent buildings faster.

"But we want to make sure they build.

"So having a stick, as well as a carrot, that might be the best option.

"It's something we'll be working towards over the next six to 12 months. We've got some ideas, but it's too early to talk about those in public."

Lester said the council was doing its part by building 750 social housing homes over the next decade, and it was time for the private sector to do the same.

The council's building programme for this year will also include a film museum and restoration works to the town hall.