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 also has information on upcoming 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 specific policies

Together with the Ministry for Business, Innovation and Employment, we will develop guidance on implementing specific policies in the NPS-UDC.

Guidance will be developed on:

  • monitoring market indicators including price efficiency
  • components of the housing and business development capacity assessment
  • more enabling and responsive plans that provide sufficient development capacity
  • best practice consenting processes for urban developments
  • preparing a future development strategy that is responsive to demand.

The table provides details on the first two 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


Preparing capacity assessment for housing and business development

Demand for housing


Housing development feasibility and take-up


Demand for business space


Assessing capacity for business


Relationship between housing and development capacity.

By June 2017

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

Capacity assessments are required under policies PB1 to PB5 of the NPS-UDC.


Local authorities with high growth urban areas must complete their first capacity assessment by 31 December 2017.


Local authorities with medium growth urban areas must complete their first capacity assessment by 31 December 2018.

Monitoring market indicators

For Policy PB6, guidance on how to interpret and respond to the suite of PB6 indicators, including how to use them to understand demand and supply.


For Policy PB7, guidance on how to interpret and use indicators of price efficiency and competition to inform appropriate responses.

For Policy PB6: by June 2017








For Policy PB7: by August 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.

Advisory groups

Advisory Groups are being set up to oversee development of aspects of the guidance. The members of the advisory group have been selected based on expertise and their ability to help ensure that guidance will be relevant to, and used by, local authorities. They include representatives from local authorities and other stakeholders.

The groups will:

  • provide input into the development of market indicators and guidance, and 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

The advisory group is made up of both local authorities and private sector representatives. 

The advisory group members are:

  • 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

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

The advisory group members are:

  • 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 if you would like further information about implementation or you are interested in being involved in the development of a particular guidance product on behalf of your council.