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.
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
Part one: Introduction
Part one of the guide introduces the evidence and monitoring requirements of the NPS-UDC.
|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:
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:
Tools for analysis of local markets
Development feasibility tool
- Development feasibility tool [MBIE website]
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
- Urban development capacity dashboard [MBIE website]
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.
The table below outlines guidance products under development. It will be updated as new information becomes available.
What will be covered
When it will be available
Consultant report informing guidance
Requirements and deadlines under
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:
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
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.
Guidance on the requirements for minimum targets, and the form of the targets.
For policies PC5 – PC11.
By 1 December 2017
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.
The table below has research that has informed guidance. The research was undertaken during the development of the NPS-UDC.
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.
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 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 firstname.lastname@example.org 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.