Guidance on implementing the National Policy Statement on Urban Development Capacity

This page has guidance for local authorities on implementing the National Policy Statement on Urban Development Capacity 2016. It includes information on technical guidance on specific policies.

Introductory guide

This guide provides a general overview of the requirements of the National Policy Statement on Urban Development Capacity 2016 (NPS-UDC) and clarification of selected terms and concepts.

Guidance on evidence and monitoring requirements

This guidance, developed in conjunction with the Ministry of Business, Innovation and Employment (MBIE) supports local authorities to give effect to evidence and monitoring requirements in the NPS-UDC (see policies PB1 – PB7 and PD1).

What the guide contains

Section of guide

Description

Part one: Introduction

Part one of the guide introduces the evidence and monitoring requirements of the NPS-UDC. 

 

It:

  • outlines the intent of the evidence and monitoring requirements, and links with other NPS-UDC policies
  • identifies affected local authorities and timeframes for implementation
  • discusses the content and quality of the evidence and monitoring that local authorities must undertake
  • makes recommendations about process, including how to determine a geographic area of focus for evidence and monitoring.
Part two: Housing demand and development capacity

Part two of the guide recommends methods for assessing the demand and capacity for housing (focusing on the feasibility and take-up of development capacity) to meet the requirements of policies PB1 – PB5.

Part three: Business demand and development capacity

Part three of the guide has recommended methods for assessing the demand and capacity for business land and floor area to meet the requirements of policies PB1 – PB5.

Part four: Business and housing interactions

Part four of the guide has recommended methods for assessing the interactions between housing and business activities and their impacts on each other to meet the requirements of policies PB1 – PB5.

 

It covers three related topics:

  • the reconciliation of housing and business capacity assessments
  • the spatial allocation of development capacity
  • how to measure development and change over time and identify cases where land uses may be shifting.

Part five: Monitoring market indicators

Part five of the guide focuses on policy PB6 in the NPS-UDC which requires local authorities to monitor a range of market indicators on a quarterly basis, including:

  • prices and rents for housing, residential land and business land by location and type; and changes in these prices and rents over time
  • the number of resource consents and building consents granted for urban development relative to the growth in population
  • indicators of housing affordability.

Tools for analysis of local markets

Development feasibility tool

This tool will help local authorities determine a housing development’s commercial feasibility using local market information. The model can be used on a standalone basis to understand the development feasibility of representative sites in specific greenfield or brownfield areas.

Urban development capacity dashboard

This interactive dashboard of market indicators will enable councils to use data as a starting point for their analyses of urban development capacity and to identify emerging problems in an area, such as decreasing housing affordability.

The dashboard includes:

  • prices, values and rents for housing and residential land over time
  • the number of residential building consents granted relative to the growth in population
  • MBIE’s new experimental statistical series – the housing affordability measure.

The market indicators are for each urban area and territorial authority, and in some cases also by ward and area unit. The dashboard information will be updated quarterly.

Future guidance

The table below outlines guidance products under development. It will be updated as new information becomes available.

Guidance topic

What will be covered

When it will be available

Consultant report informing guidance

Requirements and deadlines under

the NPS-UDC

Monitoring market indicators

Guidance on how to interpret and use indicators of price efficiency and competition to inform appropriate responses.

 

For policy PB7

By September 2017

The data, indicators, and guidance on how to interpret and respond to the information from the indicators is being informed by the report: 

Signals of Under-Capacity: the practicalities of monitoring price signals under the National Policy Statement of Urban Development Capacity.

The requirements for monitoring market indicators are outlined in policies PB6 and PB7 of the NPS-UDC.

 

Local authorities with high or medium urban growth are required to monitor a range of indicators quarterly, starting within six months (1 June 2017) of the NPS-UDC coming into effect.

 

They should start using the PB7 indicators by the end of 2017.

Future development strategies

Guidance on developing a future development strategy (FDS), including translating monitoring and evidence into an FDS.

 

For policies PC12 – PC14.

By 1 December 2017

N/A

Local authorities with high growth urban areas are required to produce an FDS by December 2018.

 

Local authorities with medium growth urban areas are encouraged to produce an FDS.

Minimum targets

Guidance on the requirements for minimum targets, and the form of the targets.

 

For policies PC5 – PC11.

By 1 December 2017

N/A

Local authorities with high growth urban areas shall have set minimum targets in their relevant regional policy statement and plan by 31 December 2018.

 

Local authorities with medium growth urban areas are encouraged to set minimum targets.

Background research

The table below has research that has informed guidance. The research was undertaken during the development of the NPS-UDC.

Report

Description

How councils estimate demand and supply of development capacity for housing and business

This report has information on the way nine ‘high growth’ councils in New Zealand estimate demand for housing and business land, and measure the development capacity available to meet that demand. It also provides a broad evaluation of how this information is used in resource management decision-making.

Signals of Under-Capacity: the practicalities of monitoring price signals under the National Policy Statement of Urban Development Capacity.

This report has informed evidence and monitoring policies in the NPS-UDC and the implementation programme. It has assisted in determining which indicators best signal the need for greater development capacity in resource management plans.

Advisory groups

Advisory groups are being set up to oversee development of guidance products. Members are being selected based on expertise and their ability to help ensure that guidance will be relevant to, and used by, local authorities. They will include local authority representatives and other stakeholders.

The role of the advisory groups is to

  • provide input into the development of market indicators and guidance to help ensure they are useful and used by local authorities as intended 
  • participate in discussions and provide feedback on proposals and drafts
  • make recommendations to the NPS-UDC project team.

The following advisory groups have been set up.

Advisory group on the development of the capacity assessments

This advisory group is made up of both local authorities and private sector representatives: 

  • Kyle Balderston, Auckland Council
  • Paul Bowman, Hamilton City Council
  • David Phizacklea, Bay of Plenty Regional Council
  • David Down, Porirua City Council
  • Cameron Wood, Selwyn District Council
  • Anita Vanstone, Queenstown-Lakes District Council
  • Patrick Fontein, Studio D4
  • Zoltan Moricz, CBRE
  • Stuart Shepherd, Sapere Consulting.

Monitoring market indicators advisory group

This advisory group is made up of local authority members, technical experts, property sector experts and specialist consultants:

  • Mario Fernandez, Auckland Council
  • Keith Hornby, Hamilton City Council
  • Andrew Mead, Tauranga City Council
  • Peter Crawford, Palmerston North City Council
  • Nick Brunsdon, Canterbury Development Corporation
  • Kim Banks, Queenstown-Lakes District Council
  • Phil Eaton, Greenstone Group.

Find out more

You can email the NPS-UDC project team at npsurbandevelopment@mfe.govt.nz  for more information about implementation or if you are interested in being involved in the development of a particular guidance product on behalf of your council.

Reviewed:
07/07/17