Eye on developers' levies

Nick Smith. Photo / Mark Mitchell

Housing affordability and the difficulty of buying a new first home have led to a review of the way councils charge property developers.

Housing Minister Nick Smith and Local Government Minister Chris Tremain are calling for submissions on the "Development Contributions Review".

Dr Smith acknowledged that housing affordability had a lot to do with how much councils were asking developers for.

For ordinary Kiwis to be able to buy a new first home, land prices had to drop.

But that would happen only if development contribution charges for infrastructure like water, roading and sewage systems were to come down first, Dr Smith said.

He said that over the past decade, section prices had more than doubled and the average charge nationally had increased from $3000 per section to $14,000.

Submissions will be taken until March 15.