Press Release – John Minto
Land speculators and property developers can expect windfall profits from today’s announcement for fast-track approval of housing developments.
The plan is unlikely to deliver a single affordable home. Auckland Mayor Len Brown makes a plaintiff plea when he says –
“if we agree to faster approval of new developments, we should expect developers to provide a component of affordable housing.”
He may as well pee into the wind. Why would developers build affordable housing now? They haven’t for the past decade. They are driven by profit rather than building the homes Aucklanders need.
So what should the council be insisting on with these new fast-track developments?
Firstly property speculators and developers should be required to pay the added value on the land rezoned for development into a council fund for affordable housing. This is what happens with overseas developments in similar countries where the “value uplift” – tens of millions of dollars – is at least shared by the community rather than taken as an unearned windfall profit by the speculator/developer.
Secondly every development of more than 10 homes should be required to provide at least 20% as affordable homes. Again this is typical of housing developments in similar countries overseas.
Without provisions such as these developers and speculators will enrich themselves while housing affordability remains a pipedream for Aucklanders.