Some criticised the move to change the party's policy. (Source: 1News)
National has unveiled its election-year policy to help solve the country's housing shortage, which includes backing away from parts of its bipartisan agreement with Labour.
Housing spokesperson Chris Bishop said a change of government in October would mean the "well-intentioned" medium-density rules would become optional for councils.
Bishop announced the party's supply policy on Q+A this morning after leader Christopher Luxon signalled the changes to National's position at a public meeting earlier this week.
Dubbed by some as the "townhouse bill", the sweeping new rules allowed developers to build more medium-density homes, like townhouses, within existing urban areas and have been divisive for some since the changes were first announced in 2021.
"We have received feedback that councils and communities want greater flexibility about where new houses are built. National have always said we are open to sensible change that still delivers a massive increase in housing, and this policy does that," he said.
"National will let councils opt out of the one-size-fits-all approach to intensification — the MDRS changes. But councils must show they can meet future demand by either zoning land through greenfield development or through greater density."
The townhouse bill was supported by all parties, with the exception of ACT, after the Government teamed up with National to push the legislation through two years ago.
Central government would take on new reserve powers to rezone land itself if councils refused to zone enough future housing for the next 30 years of projected population growth, Bishop said.
He said councils would have "more flexibility about where houses are built", including more greenfield development on the rural outskirts of major centres.
Local government would also be incentivised to allow more homes with a new $1 billion fund for infrastructure.
The party would cull the Government's KiwiBuild programme, Affordable Housing Fund, and Housing Acceleration Fund in order to pay for the new "Build-for-Growth" fund.
The details
National's "Going For Housing Growth" policy document outlines the party's ambitions if it wins the general election in October.
However, the party will still support the requirement to allow six-storey apartment buildings around major public transport hubs or "rapid transit" stations and go further by allowing more commercial or "mixed-use" development next to homes.
Allowing more apartment development was part of the Government's original housing deal with National under its national policy statement on urban development.
"National's strategic vision for cities is to enable more density in transit corridors with the requisite infrastructure to support growth, with more flexibility for councils to reduce intensification in suburbs without infrastructure capacity."
The party says it will also significantly alter the Government's national policy statement that limits urban sprawl to protect "agriculturally-productive land", known as the NPS-HPL, in order to allow more farmland to become new suburbs.
Bishop said the party would also reform the funding system for how transport projects and new infrastructure for greenfield developments were delivered.
Bipartisan housing accord?
The party's joint housing deal with Labour was announced in October 2021 by then-leader Judith Collins and then-housing spokesperson Nicola Willis amid Auckland's Level 4 Covid-19 lockdown.
The Medium Density Residential Standards (MDRS) allows people to build up to three homes, up to three storeys, on most sites without the need for resource consent.
At the time, Collins said the commitment to work together was "truly a historic moment" for the two political parties.
"Today is truly a historic moment for New Zealand: a time when our two major political parties stepped up together to give Kiwis the right to build," she said.
"While Parliament is an adversarial place by nature, it is important that politics can be put aside in emergency situations — be it responding to terror attacks, getting the message out on vaccinations, or addressing our housing emergency."
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