The hearing on a controversial inclusionary housing proposal designed to improve the supply of affordable housing continued in Wānaka on Friday (March 1). 

Christchurch-based Tim Allan, a director of three development companies including David Reid Homes, told the hearing panel he believed the proposal amounted to a tax on developers.

Under the proposal, most new residential subdivisions would have to pay an ‘affordable housing financial contribution’ in either land or cash.

This would be collected by Queenstown Lakes District Council (QLDC) and provided to Queenstown Lakes Community Housing Trust or another registered housing provider to supply affordable houses for low and middle-income residents.

Tim said this would be a misuse of the Resource Management Act 1991 for social policy.

He also said it was “not within the scope of the council’s mandate to introduce controls on the pricing of housing by imposing a financial contribution” and the proposal would make the supply of housing more expensive.

Tim’s views echoed those of many of the people who have spoken in opposition of the proposal over the past couple of days.

Earlier this week the hearings panel heard from QLDC and other supporters of the proposal.

Economist Shamubeel Eaqub, who helped QLDC develop the inclusionary housing proposal, told the panel the “sheer pace of growth and additional demand relative to supply of homes” in Queenstown Lakes has “intensified” unaffordability.

The average house sale price in Queenstown Lakes district in 2023 was approximately $1.7M - $800,000 more than the New Zealand average.

Shamubeel said economic evidence showed that an inclusionary housing policy is necessary to provide a long term sustainable pathway for the district's on-going growth.

“Without the adoption of a policy to influence a channelling of dwellings to the more affordable end of the continuum, the status quo will continue, and likely worsen,” he said.

Friday was the final day of the inclusionary housing hearing.

The hearings panel (chair Jan Caunter, Jane Taylor, Ken Fletcher and Lee Beattie) will now make recommendations on the proposal for QLDC to consider.

PHOTO: Supplied