Election needs to address consenting costs, says real estate boss

The New Zealand boss of the largest real estate company in the world, Century 21, says the country’s politicians could help housing affordability simply by adopting a renewed focus this election on dramatically dealing to the many costs associated with consenting.

“Catch-phrases like cutting red tape with be in most parties’ manifestos. However, like many other Kiwis I want to see some real results in this area, not just more tinkering around the process,” says Geoff Barnett, National Manager of Century 21 New Zealand.

Mr Barnett acknowledges that positive changes have been made by central and local government over recent years particularly around land supply, but the costs associated with consenting new houses remain too high with many time delays completely unacceptable.

“You hear horrific examples of RMA processes to get a subdivision through adding $60,000 to the cost of each new section. It’s certainly not uncommon for one new house to accumulate more than $30,000 in consenting costs, inspection fees, and then there’s development contributions.”

He says it would be refreshing for politicians and political parties this election to move beyond the predictable red-tape rhetoric and campaign on actual percentage or dollar value gains their policies would deliver for new home buyers.
“The Reserve Bank’s LVR exemptions encourage more people to buy new homes. We now need our politicians to also enable and encourage more people into new homes. The huge regulatory costs lumped on new homes are by no means sorted. In fact, confronting this issue head on is more important than ever.”

Mr Barnett says he appreciates consenting costs are not everything, but reducing them significantly would help housing affordability as well as boost the country’s total supply – two key issues.

“Adopting a whole new consenting regime or expectation at a national level could come in a number of forms, but let’s now have the debate on how this is best achieved.”

The head of Century 21 New Zealand is also calling for the intensification of urban Auckland sooner rather than later, made achievable by the region’s unitary plan.

“To me it seems most developers have so far opted to head to greenfield sites in north, west and south Auckland. This only loads more onto the region’s already struggling infrastructure. Somehow the council needs to encourage developers to put a more immediate focus on intensifying urban Auckland. That is where the more immediate housing need is and where a more sustainable solution can be delivered,” says Mr Barnett.
www.century21.co.nz
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