New Planning System to Boost Housing Supply and Strengthen Property Rights

Bishop says the Resource Management Act 1991 (RMA) has been a major driver of the housing affordability crisis, despite New Zealand having a land mass similar to the United Kingdom but only five million people.

The Government says its new planning system will make it dramatically easier and faster to build the homes New Zealand needs, while providing homeowners with greater freedom over how they use and improve their property. RMA Reform and Housing Minister Chris Bishop says the reforms represent the most pro-housing changes in a generation and directly tackle the root causes of New Zealand’s long-standing housing crisis.

RMA Blamed for Housing Shortages and High Costs

Bishop says the Resource Management Act 1991 (RMA) has been a major driver of the housing affordability crisis, despite New Zealand having a land mass similar to the United Kingdom but only five million people.

For decades, inquiry after inquiry has concluded that the planning system — particularly restrictions on the supply of developable urban land — has pushed up land prices, slowed construction, and created barriers to housing choice.

The Government’s Going for Housing Growth programme focuses on three core fundamentals:

• Increasing land supply

• Ensuring infrastructure keeps pace with growth

• Creating incentives for councils to enable development

Ultimately, Bishop says the goal is to create competitive urban land markets, abundant development opportunities, and lower land prices.

Planning Bill to Open Land Supply and Modernise Urban Growth

A key purpose of the new Planning Bill is to ensure land is consistently available to meet present and future demand for homes and businesses. National direction will follow, including:

• Housing growth targets for councils

• Policies enabling outward growth at the urban fringe

• Requirements for greater mixed-use zoning

• Removal of minimum floor area and balcony requirements

• Strengthened urban development principles building on the existing National Policy Statement on Urban Development (NPS-UD)

These changes are intended to support higher-density development in some areas while allowing cities to expand where appropriate.

Standardised Zones and Simpler Rules Nationwide

Today, New Zealand has over 1,100 zones, each with its own rules, creating what Bishop calls a “maze for anyone trying to build.”

Under the new planning system:

• Zones will be standardised nationwide

• Rules for building height, site coverage, setbacks and daylight access will be consistent across regions

• Developers will be able to reuse house and apartment designs anywhere in the country without redesigning plans for each council

This level of standardisation is expected to reduce delays, compliance costs, and uncertainty — making building faster and more predictable.

Major Changes That Enable More Housing

1. More you can do without needing consent

The new system will no longer require councils to control aspects such as:

• Internal house layout

• Balconies

• Private outdoor space

This gives homeowners more freedom to design homes that suit their needs.

2. Faster, cheaper consenting

If a project does require consent:

• Rules will be clearer

• Only directly affected people can participate

• A new planning tribunal will provide low-cost dispute resolution

3. Faster land release

When land has been identified in spatial plans as suitable for development, councils will no longer need lengthy plan changes or extended consultation to rezone it.

4. Greater certainty for developers

Long-term spatial plans will map where new homes, infrastructure and commercial hubs will go, enabling strategic investment and reducing risk.

5. Easier subdivision

More subdivision will be allowed by default, supporting a wider range of housing types and lot sizes.

Going for Housing Growth to Drive the Changes

Once the Planning Bill and Natural Environment Bill pass into law, Going for Housing Growth will be implemented through:

• Strong national policy direction

• Clear national environmental and planning standards

• Housing capacity unlocked around key transport corridors

• Removal of outdated barriers like rural–urban boundaries

• Allowing more mixed residential and commercial activity in zones

These changes will make it easier to build both homes and local amenities such as cafés, dairies, and services within walking distance.

Strengthening Property Rights

The new system aims to rebalance planning powers so councils cannot impose unreasonable costs on property owners. Councils will be required to provide relief when heritage or biodiversity protections significantly restrict land use.

“The new system strengthens property rights and restores the freedom for New Zealanders to use their land in ways that affect nobody else,” Bishop said.

Legislative Timeline

The planning reform bills will be introduced to Parliament this afternoon.

• The Government aims to pass them into law in 2026

• National policy direction will be finalised within nine months of enactment

• National standards will be released in stages

• New Zealanders will be able to provide feedback through the Select Committee process

The reforms collectively aim to meet housing demand, reduce costs, expand choice, and ensure New Zealand’s planning settings support growth rather than blocking it.