New Zealand’s Medium Density Residential Standards (MDRS) Under Scrutiny by ACT Party

The ACT Party has announced its intention to repeal the Medium Density Residential Standards (MDRS) brought in by the previous New Zealand government. These planning laws were implemented to address the country’s housing shortage by promoting urban density. However, the ACT Party believes that the MDRS has flaws and should be optional for local councils.

Background of the MDRS

The MDRS (Enabling Housing Supply and Other Matters) Amendment Act 2021 requires local councils to adhere to a maximum density standard of three houses per residential site with a maximum height of 11 meters or three stories. The aim was to accelerate housing supply in high-demand areas and bypass local council plans to allow a wider variety of homes to be built without resource consent.

The amendments took immediate legal effect but were scheduled to be operational by March of this year. In May 2023, Prime Minister Christopher Luxon and Deputy Leader Nicola Willis agreed to cooperate with the then-Labour government in a bipartisan agreement to promote the MDRS.

However, the National Party, led by Mr. Luxon, retracted their support for the MDRS before the general election in November. Mr. Luxon expressed concerns about the perceived overarching nature of the MDRS, stating, “I think we’ve got the MDRS wrong.”

ACT Party’s Opposition to the MDRS

The ACT Party, in coalition with National and NZ First, has committed to making the MDRS optional for councils. They believe that giving decision-making power back to local councils is crucial for their cities.

ACT’s Housing spokesperson Cameron Luxton stated, “Now we’re giving councils back control over what happens in their community.” He emphasized that they never considered the MDRS to be a good idea and that this repeal would be a relief for many.

ACT had proposed using the existing Auckland Mixed Housing Zones as a means of achieving building intensification. They argued that the MDRS lacked design standards and could lead to privacy issues for existing homeowners.

Another major concern raised by the ACT Party is the financial burden on councils to fund new infrastructure to accommodate the MDRS. They propose introducing a GST-sharing scheme to provide councils with more resources to cope with a growing population.

Conclusion

The ACT Party’s opposition to the MDRS highlights the need for a reevaluation of New Zealand’s planning laws to address the housing shortage. By making the MDRS optional for councils, the ACT Party aims to empower local decision-making and ensure that infrastructure and design standards are adequately considered. The future of the MDRS now rests in the hands of the New Zealand government as they consider the ACT Party’s proposal.