Want Cheaper Rent? Then Support Further Reform of the RMA

Press Release – ACT New Zealand

ACT Leader John Banks today called for urgent reforms of the Resource Management Act to address the housing crisis in Auckland, where record rent increases have been reported.ACT Leader John Banks
March 14 2012

Want Cheaper Rent? Then Support Further Reform of the RMA

ACT Leader John Banks today called for urgent reforms of the Resource Management Act to address the housing crisis in Auckland, where record rent increases have been reported.

“Not enough houses are being built for the number of people moving to Auckland, with much of the housing shortage caused by a shortage of buildable land,” Mr Banks said.

“The majority of the problem lies in the RMA. By stipulating endless planning and consultation, it spawns costs, delays, and outright restrictions on land development. The land shortage has been exacerbated by the credit crisis and anxiety over leaking homes.

“The Demographia International Housing Affordability Survey rated Auckland house prices as ‘severely unaffordable’ and just last month economic consultants BIS Shrapnel predicted that Auckland will be short 24,230 homes by mid next year if nothing is done.

“Since the mid-1990s rents have remained stable while more and more people have entered the rental market to avoid rising house prices. Now renters too are being hit by the housing shortage and the core issue of land supply must be addressed.

“This shortage is not only pushing rents up, it is contributing to poverty as it takes away money from the family budget, saps the economy and makes life unnecessarily difficult. This regulation hits the poorest the hardest.

“There is no quick fix as it takes time for houses to be built, but that is why it is so important that action is taken now.

“ACT is committed to freeing up more land for New Zealanders to build their lives on, at prices that aren’t out of reach,” Mr Banks said.

ENDS

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