There has been a Remissions policy in action for the past 6 years by Hutt City Council. This incentive was introduced to promote medium density and high density developments throughout Lower Hutt. With such a successful campaign the Hutt City Council has been forced to cut the incentive short after reaching targets far sooner than anticipated. After seeing the success of this incentive Upper Hutt City Council has introduced a Remissions policy of their own.
Hutt City Council Policy
Hutt City Council ran their remissions policy from the beginning of July 2012 and it was anticipated to run through to June 2020 after an extension was made on the policy. However with the success of the incentive another amendment was made to conclude this policy to finish December 2018 with the idea to move the funding that was initially planned to be used for housing development to be directed to infrastructure.
Upper Hutt City Council Policy
Upper Hutt City Council has announced the commencement of a remissions policy that began in July 2018 and will run through to 2019. We expect this to make a small push in developments however with the criteria being much smaller in range of properties as well as the shorter period of only 1-2 years this will be an important consideration for developers before partaking in development in Upper Hutt.
How this Influences the Market
Incentives such as these change our clients thinking. As the Hutt City experience shows there is a slow uptake towards the concept and only once developers get more confidence in the security of the incentive they then commit to the process. This resulted in the amount of savings in the earlier period of the incentives to be minimal however by the end the uptake increased exponentially. This used up the allocated funding. Due to the targets being reached before expected this brought the closure of the incentive forward. It is therefore important to get in early.
While Upper Hutt City Council is following suit from Hutt City Council there are some differences to take into consideration before moving into this area to start your next development. While Hutt City council only required three dwellings to be constructed Upper Hutt requires there to be four lots one of which needs to be what is called a ‘Bare Lot’. This definition can be found in UHCC ‘Long Term Plan 2018-2028’ Page 313, along with all other details about the incentive.
With the conclusion of the Hutt City Council incentive there is a large amount of pressure to get projects into council and approved before the finish date. Before you decide to commence your next development it is important to consider all possibilities for your design and layout of the site. We encourage you to obtain initial advice from us prior to purchasing development sites in order to maximize the potential of your purchase.