Second year of Accord off to encouraging start   4 Mar 2015

New Zealand Government

Second year of Accord off to encouraging start

Building and Housing Minister Dr Nick Smith and Mayor Len Brown have today welcomed the release of the latest Auckland Housing Accord monitoring report, saying it shows an encouraging start to the second year of the agreement between the Government and the council to address the city’s housing supply and affordability challenge.

“This quarterly report for the first three months of the second year of the Housing Accord shows we are on target for meeting our Year Two target of 13,000. A total of 3291 new sections and dwellings were consented – or just over 25 per cent of the full-year target,” Dr Smith says.

“The collaborative work that the Government and Auckland Council is undertaking with the development community is beginning to pay dividends, with a significant increase in new sections, new houses and new apartments being consented in the first three months of the second Accord year,” Mr Brown says.

“I am particularly encouraged by the 768 apartments consented in this latest quarter – the highest in nine years, and twice the average of the last decade. We are making the rules work to make modern urban city living in Auckland a reality.”

The Auckland Housing Accord, agreed on 1 October 2013, set a target of 39,000 new sections and dwelling consented over three years – with 9000 in Year One, 13,000 in Year Two and 17,000 in Year Three. The first year target of 9000 was exceeded, with 11,060 new sections and dwellings achieved. The latest report shows that at 31 December 2014, 14,351 sections and dwellings had been consented – 2101 ahead of the Accord target for the period.

Other highlights in the report include:

• The number of dwelling consents in Special Housing Areas (SHAs) has increased from 356 at 30 September 2014 to 529 by 31 December 2014;
•
• The number of new sections granted resource consents in SHAs has increased from 477 at 30 September 2014 to 929 by 31 December 2014;
•
• The number of available sections has increased for the first time in 12 years to 12,057; and
•
• 1360 hectares of land outside the 2010 Metropolitan Urban Limit has been given SHA status with the capacity for 14,116 dwellings and 35,000 people.

The Auckland Housing Accord monitoring report, produced jointly by Auckland Council and the Ministry of Business, Innovation and Employment (MBIE), covers the three months from October 2014 to December 2014. The Accord, agreed between the Government and Auckland Council, provides for the creation of SHAs by the council with the approval of Government. Qualifying developments in the areas are able to be streamlined and fast-tracked. Eighty-four SHAs have been created in Auckland since the Accord was signed.

“The council is committed to continuing its collaboration with the Government in the development of new initiatives to address Auckland’s issues of residential affordability, land supply, equity, choice and quality," Mr Brown says.

“We have significantly advanced our infrastructure delivery programme, so the delivery of a range of water, parks, roading and stormwater infrastructure is being planned and delivered where and when it’s needed most to increase the development capacity of residential land.

“The council is beginning to approve massive re-zonings of greenfield areas for residential development. Once the areas ear-marked for rezoning within the 11 greenfield Special Housing Areas are approved, we estimate that there will be approximately nine years ‘ready-to-go’ land supply, which can be readily converted into sections for homes.”

"We are succeeding in growing housing supply with the Accord in Auckland and with five other councils around the country. The number of building consents nationally has grown 81 per cent, from 13,662 in 2011 to 24,717 in 2014. Figures out today from Statistics New Zealand show $15 billion worth of building work was carried out in 2014 - $2.8 billion higher than in 2013, or a 23 percent rise,” Dr Smith says.

“The Government’s KiwiSaver HomeStart, which comes into effect 1 April, will also provide assistance to 90,000 first home buyers putting together a deposit on a house, while our planned second phase of Resource Management Act reforms is aimed at resolving the long-term issues affecting housing affordability and supply.

"We are making progress but more still needs to be done. The Government is working on other complementary initiatives that we will be announcing in coming months," Dr Smith concluded.

Further information on the Auckland Housing Accord is available from:www.aucklandcouncil.govt.nz/EN/ratesbuildingproperty/housingsupply/

Pages/aucklandhousingaccord.aspx.

ends

Add a comment