Bay of Plenty Housing Accords announced

Housing Accords in Tauranga and the Western Bay of Plenty have been agreed by Housing Minister Dr Nick Smith and local mayors Ross Patterson and Stuart Crosby today that will provide an additional 1175 new homes and sections over the next two years.

“They key to improving housing affordability in the Bay of Plenty is land supply. These new Accords will enable an additional 1000 homes and sections in Tauranga and 175 homes in the Western Bay of Plenty to be built over the next two years by freeing up the supply of land,” Dr Smith says.

“These steps with these two councils reflect the supply and affordability issue in the Bay of Plenty. The current house build rate is insufficient to match population growth and the proportion of average income required to service an 80 per cent mortgage is 63 per cent and well above the affordability goal of 50 per cent.”

The Tauranga Accord sets a target of providing an extra 1000 new sections over the next two years which will meet the demand of the projected population growth. The Western Bay of Plenty Housing Accord sets a target of increasing the number of building consents issued in the district from 200 per year to 325 in the first year and 350 in the second, providing for a net total of 175 extra houses.

The Accords are expected to be ratified by the Councils next week to take immediate effect. The Councils will then identify areas to recommend to the Government to be designated as Special Housing Areas.

“It is up to the region to decide where and how it wants to grow. The Accords support Tauranga and the Western Bay of Plenty to build momentum in their housing markets by encouraging developers to provide houses that are affordable and targeted at the local market,” Dr Smith says.

“These Accords continue the good progress the Government is making on housing reforms. We now have Housing Accords in place in Auckland, Christchurch, Wellington, Tauranga and the Western Bay of Plenty, with negotiations close in Queenstown. They are just part of the wide programme of work we have underway to address New Zealand’s housing challenge. We are also reducing building material costs, reining in development contributions, cutting compliance costs and investing in skills and productivity in the construction sector.

"I commend both the Tauranga and Western Bay of Plenty councils on the work that has gone into these Accords. They are a constructive step forward in improving housing supply and affordability in the region."