National Policy Statement on Urban Development

MBIE worked in partnership with the Ministry for the Environment to develop the National Policy Statement on Urban Development Capacity.

The purpose of the National Policy Statement on Urban Development Capacity is to ensure regional and district plans provide adequately for the development of business and housing. This is to enable urban areas to grow and change in response to the needs of their communities.

Local authorities impact on development and control land use through their Resource Management Act plans. Some urban areas in New Zealand are growing quickly, and the supply of space to meet housing needs isn’t keeping up with demand, so house prices in some areas are increasing much faster than incomes.

The recent Productivity Commission inquiry into ‘Using land for housing’ found that local planning decisions are overly constraining the supply of space for housing. The Productivity Commission recommended that the Government prepare a national policy statement giving direction to local authorities to help address this.

In August 2015, the Minister for the Environment and Building and Housing announced his intention to consult on the development of a proposed urban national policy statement.

The Ministry of Business, Innovation and Employment worked in partnership with Ministry for the Environment to develop a proposed National Policy Statement on Urban Development Capacity, which was released for public consultation on 2 June 2016.

The National Policy Statement is gazetted on 3rd November and comes into effect from 1st December 2016.

More information about the National Policy Statement on Urban Development Capacity, including submissions from the public consultation undertaken earlier this year are available on the Ministry for the Enviroment website.