Nelson Housing Accord agreed between Govt and Council

A Nelson Housing Accord aimed at improving the supply and affordability of housing in the district has been signed today by Building and Housing Minister Dr Nick Smith and Mayor Rachel Reese.

“Nelson’s housing issues are not as acute as those of Auckland, but we still need a focus on increasing the supply of more affordable homes particularly for young families. Our ratio of house price to income in Nelson is 6.8, as compared to Queenstown’s 8.9, Auckland’s 8.4 and a national average of 5.5. Census data shows home ownership amongst under 40-years-olds has declined by 30 per cent since 2001,” Dr Smith says.

“The Government and the council agree a collaborative approach is needed to improve Nelson’s housing affordability and productivity to ensure a greater supply of homes priced for first home buyers.”

The Accord, which was signed today, will see the Government and the Nelson City Council to work together to support an increase in housing and improve housing affordability in Nelson. It sets a target of consenting 720 new dwellings over the next three years.

“Encouraging more affordable housing choice is a priority for this council and the signing of this Accord marks an important step in a collaborative approach to addressing this issue,” Ms Reese says.

“Collaboration is key to our success and we look forward to working with the Minister, the wider community, developers and others to reach our goals over the long term.

“The council’s aim is to provide affordable housing choices for first home buyers, young families, as well as older people looking to downsize. It is also an important opportunity to help boost economic growth for the region by increasing the supply of affordable housing.”

"I commend the Nelson City Council on the work that has gone into the Accord agreed today. This is an important step forward in improving housing supply and affordability in the area and I look forward to seeing the progress over the coming months,” Dr Smith says.

“This Accord continues the progress the Government is making on addressing New Zealand’s housing challenge. It is the eighth Accord we have agreed with local councils to date, after Auckland, Christchurch, Wellington, Tauranga, Western Bay of Plenty, Queenstown Lakes and Tasman.

“A key goal is increasing the affordability of homes and this is to be achieved by both facilitating easier consenting and growing demand. This Accord needs to be considered alongside the new HomeStart scheme, which provides grants of up to $20,000 for a new home priced under $450,000. 1625 HomeStart grants are expected to be available in Nelson over the next five years.

“The next steps in our programme of work include our planned second phase of reforms to the Resource Management Act and the Building Act to reduce the compliance costs in developing new housing.”