The Property Council of New Zealand has voiced its backing for the government’s recent plan to reform the building consent process, aiming to accelerate housing development across the country.
Leonie Freeman, chief executive of Property Council New Zealand, said the reforms are a response to persistent challenges in the sector.
Freeman said that inefficiencies in the current system have caused delays and increased costs for developers, complicating efforts to meet New Zealand’s housing demand.
“Our members, including the country’s leading property developers, investors, managers, and property experts, have been clear: the current consenting system is plagued by delays and inconsistencies across regions,” she said.
She said that the delays and variations between regions are pushing up costs and impeding progress on essential housing projects.
The Property Council has been pushing for changes in the consenting process, with a recent member survey identifying this as the primary issue they want to see addressed.
Freeman noted that the council’s members are seeing wait times for building consents stretch beyond two months, with larger projects facing resource consent delays that can last from six months to over a year.
These delays can complicate the insurance process, as policies need to be adjusted to account for prolonged construction periods and the potential for increased risks over time.
“This creates a level of uncertainty that drives up costs, slows progress, and ultimately puts home affordability further out of reach,” she said.
The Property Council has welcomed the government’s intent to address these issues, emphasising that a streamlined consenting process could lead to more predictable and efficient project delivery, helping to control development costs.
“The government’s commitment to exploring solutions that will streamline building consents is a positive step toward addressing these long-standing issues,” Freeman said.
She explained that this move could usher in a more streamlined, cost-effective system that benefits the entire industry and supports the goal of increasing the house supply.
Over the past nine months, the Property Council has been actively engaging with government officials to advocate for these changes.
Freeman expressed optimism that the announcement would lead to further improvements across the consent system.
“At the heart of this is the goal we all share: building more homes, more quickly, and at a lower cost. The ripple effects of a more efficient system would be felt across every community in New Zealand,” she said.
She also said the Property Council was committed to continuing its collaboration with the government, with the goal of creating a consent system that reduces red tape, supports development, and aligns with New Zealand’s housing goals.
The government announced its plans to overhaul the building consent process after adjusting its plans for increasing the Fire and Emergency New Zealand (FENZ) levy, which is funded through insurance premiums.
While a 12.8% levy hike took effect in July, future increases have been scaled back. A planned 5.2% increase by 2029 has been lowered to 2.2%, and a proposed $40 flat charge on vehicle insurance has been reduced to $25.
Internal Affairs Minister Brooke van Velden stated that these adjustments aim to balance FENZ’s financial needs with the economic burden on New Zealanders. In addition, FENZ has been directed to identify $60 million in cost savings by 2029 to bolster its financial reserves.
FENZ's operational expenses are projected to rise to $748 million next year, up from $423 million in 2016, with significant capital costs also anticipated. The agency must also repay a $75 million loan from the government.
