KEY POINTS:
High land costs and delays due to slow building consent approval have been blamed for strangling Auckland's housing supply.
A report from consultants Motu released yesterday by the Centre for Housing Research pinpointed these issues as the main factors behind problems with the city's housing supply.
It recommended allowing more rural land to be developed, fast-tracking the consent process, eliminating red tape for developers and making council rule books much simpler.
Housing Minister Chris Carter objected to some of the recommendations, saying it was too simplistic just to free up more land. He accused developers of land-banking and said they built vastly expensive houses which locked out first-home buyers.
The Motu report called for district plans to be simplified and for councils to be actively punished, forced to pay half the funding costs for developments which were not processed in the regulatory timeframe.
"This would provide balanced incentives for the council and for the developer to hasten the consent processing period," the report said.
The report also examined the effects of abolishing Auckland's ringfence, or metropolitan urban limit, and for more land to be freed up for development.
"An alternative to extending the limit is to completely overhaul zoning and other regulatory processes to enable intensification within built-up areas. District plans would have to focus on effects rather than on specific criteria. The Resource Management Act process needs a revamp to reduce delays associated with objections.
"One possibility is to allow expert panels to preside over consent decisions in cases where a development proposal falls outside the existing district plan," the report said.
"Councils can provide leadership in consolidating sites in pre-specified areas that allow larger scale medium/high density housing. To assist them in doing so, a compulsory acquisition process, modelled on company take-overs legislation, could be legislated, that would enable councils to purchase properties once a sufficient proportion of residents had agreed to sell.
"Purchase contracts would have to include price safeguards and substantial notice for existing owners. Intensification also requires council leadership on infrastructure. Intensification should only occur where high quality infrastructure can be guaranteed for all affected communities. (Infrastructure provision may be easier in green fields situations.) Local and central government can provide leadership by looking to intensify residential dwellings on their own land holdings. Given the scale of Auckland's housing issues, it is likely that both expansion and intensification will be required."
The Problem
* Auckland needs more houses as the city grows.
* Land prices are rising fast, affecting development.
* Consent delays frustrate developers.
* Even a one-month delay can add $100,000 to a $12 million project.
Possible Solutions
* Free up more fringe land for houses.
* Penalise councils for delaying consents.
* Simplify district plans so developers build more.
* Encourage more housing intensification.
* The Government wants cheaper houses built.
