Govt targets land-bankers with urgent changes

Housing Minister Nick Smith.

The Government has moved to prevent land-banking in Auckland as part of a series of urgent changes being debated in Parliament this afternoon.

But Opposition parties say the move comes too late and will not guarantee the construction of more houses in the city.

The law change being considered by Parliament will extend Special Housing Areas in Auckland for another six months.

National's main policy for increasing housing supply, the Special Housing Areas allow fast-tracked consent for large housing developments, a proportion of which must be sold at affordable prices.

They were introduced three years ago in a bid to ramp up construction rates in the face of a housing shortage in the city.

Without the urgent law change, they would expire in 10 days.

Housing Minister Nick Smith said the changes would allow residential construction rates to be maintained until Auckland's Unitary Plan came into force next year.

He said eight designated areas with capacity for 7900 homes might not progress without the extension.

The law change also aims to prevent land-banking by requiring developers to lodge consent applications within 12 months or risk losing their Special Housing Area status.

There are 154 Special Housing Areas in Auckland, 12 of which have not yet lodged consents.

"I have wanted to strengthen the provisions in putting heat on the landowner to actually get on and get the resource consents and the plan changes," Smith said.

Labour and Greens said they would vote against the bill.

Green Party co-leader Metiria Turei said Smith had finally woken up to the problem of land-banking. But the new "use it or lose it" rules would not work because they did not guarantee the completion of houses, she said.

Labour leader Andrew Little also said his party would vote against the bill.

He said the Special Housing Areas had failed to lead to a significant increase in supply and the bill was another "desperate" bid to address a housing crisis in Auckland.