Managing the Cost of Auckland’s Housing
Auckland’s housing problem has been growing for many years and there is no one-off overnight fix. Media newscasts restricting debate to one-minute information segments doesn’t help understanding.
A recent TV news clip showing Deputy Mayor Penny Hulse stating the implementation of the proposed Auckland Unitary Plan in August would bring about the removal of the Urban Limit (UL) regulations. The inference was that this is good but is, in fact, so short on facts that I believe it is misleading.
Council charges and demands are a big part of Auckland’s housing costs. Suggesting the Unitary Plan will remove subdivisional restrictions in the outerlying parts of Auckland may be true in theory but I doubt that’ll be the case in practice. At present the Unitary Plan is overflowing with Precincts and Overlays that include duplication and contradictions. Future attempts to gain consent for subdivision in areas outside the present UL boundaries will result in long, costly debate with Council. An Urban Limit boundary drawn on a map does little to generate a fee income for Council. However implementation of the Unitary Plan will generate considerable work for council, consultants and yourself. This change is highly unlikely to make planning costs cheaper.
There are many factors contributing to the astonishingly high Auckland house price. Most remedies I have heard touted so far, are based on market forces. It is too simplistic to claim ‘supply and demand’ is the cause of rising house prices and that to increase supply will bring new homes within the financial reach of the average young Auckland family.
Releasing more land for subdivision in itself will have limited results unless it is managed properly. I will advocate for a effectively controlled release of land that ensures development is completed within a predetermined timeframe. This will stop ‘land banking’. I will demand Council apply practical planning demands and be proactive with developers to get through the Planning process as fast and cost-efficiently as possible.
Another huge contributor or to the price of new housing, is the extraordinary cost of infrastructure. I’m not talking about municipal infrastructure like public sewer lines and watermains. I’m talking about the fees utility providers charge to connect individual property owners to the city’s underground services. It is ludicrous that property owners have to pay duplicated Consent fees, Road Closure fees and Traffic Management Control charges when carrying out separate excavation work for each underground service, when in many situations these services can all be laid in the same trench.
I will advocate for Council regulations that encourage utility providers like WaterCare, Telecom, Vector and others to collaborate when supplying services. This will eradicate duplication of charges to the consumer and inconvenience to the general public.
