With the formation of the new Government the ambitious 100-day plan provides for a myriad of changes in the property and commercial sectors. It’s important to note that these are summary indications of what is to come, and a greater level of broad changes may also be looming in the future.

Repeal of the Spatial Planning and Natural and Built Environment Act, and introducing a fast-track consenting regime

The Natural and Built Environment Act was the primary replacement legislation for the outgoing Resource Management Act 1991. It broadly required regions to develop their own natural and built environment plans for land use and environmental management.

This was complementary to the Spatial Planning Act which created a new requirement for long-term regional and spatial planning, and residential developments.

The new Government intends to utilise temporary fast-track processes for resource consents used during Covid-19 pandemic, and extend them to a broader, permanent, Infrastructure Fast-Track Process for major infrastructure projects. This means a faster process for developers and builders to access and receive approved resource consents.

Amendments to the Overseas Investment Act 2005 to make it easier for build-to-rent housing to be developed in New Zealand

This option provides some potential and flexibility in upcoming build-to-rent developments, especially those which consist of multi-unit residential developments within walking distance of key transport links.

What this means for investors, builders and developers is:

• Easier access and affordability for overseas and local investment into the local property market;
• Eligibility for depreciation deductions on Built-to-Rent developments (similar to other commercial buildings).

Housing growth policies and making the Medium Density Residential Standards optional for councils

This option provides an immediate zoning change for 30 years’ worth of housing demand immediately for all councils in major towns and cities; alongside increased flexibility for councils to opt-out of the Medium Density Residential Zone law which provides councils more autonomy in deciding where houses are being built.

What this means is:

• Increased availability of land for new build homes and developments in our major towns and cities;
• Increased variety of density relative to planned developments.

Improved rental markets

Intentions to restore broader interest deductibility and reducing the bright-line period to two years. 

The reduced bright-line period means that properties (that are not someone’s main home) will be able to be bought and sold within a shorter period than previously without being liable to pay tax on any profit made.

Summary

On a broader level, the direction taken towards the perspectives on property and land suggests an easing of restrictions, paired with greater flexibility, for an increase in new developments opportunities and alternative housing options.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Laurie Pallett and Raiyan Azmi