Zoning law changes could create threats, opportunities and war with the neighbours

The government's latest changes to city planning rules will almost certainly ignite an increase in simmering neighbour wars, but there are ways to avoid too much friendly fire, says Ray White real estate agent Drew Miller. 

"Upcoming government planning reforms will create lots of opportunities for homeowners, but I expect we're going to see a sharp escalation in neighbourhood conflicts," Miller says. 

In August, the government introduced two major planning reforms to enable higher-density housing—the National Policy Statement on Urban Development (NPS-UD) and the Medium Density Residential Standards (MDRS). 

Property owners in Auckland will be allowed to build up to three homes of up to three storeys on their site, such as townhouses and terraced housing—subject to certain conditions. The public can make submissions until September 29 on how the rules will affect Auckland's Unitary Plan. 

Miller advises that property owners should make submissions to the council if they are concerned about the changes. But he also warns them to prepare for how the changes could start disputes between neighbours. 

"Planning rule changes always create division, and property disputes can get ugly. These latest updates are almost guaranteed to bring out both the best and the worst in people. 

"The rules for increased intensification will make it possible for between 48,000 and 105,500 new dwellings over the next five to eight years. A lot of property owners will want to be the first to take advantage of these changes, and that will surprise their neighbours, leading to disputes," Miller says. 

Although the final version of the rule tweaks is yet to be finalised, Miller says it is wise for property owners to prepare for anything. 

"Brace for change. There are many things to think about before the rules are finally delivered. 

"For example, if you have the lion's share of the cross lease, which is written as a half share, then you should think about freeholding the title. 

"I can predict a lot of people moving from cross lease to freehold titles to make the most of development potential," Miller says. 

He says it is important to be aware of caveats that, for example, may affect character homes which will be more tightly controlled, limiting what can be done. 

"For those thinking of buying single houses on large tracts of land, the new rule changes are a great opportunity since single house zones may be changed to allow for greater intensification. However, dozens of new houses or townhouses popping up on the street are bound to cause a stir. 

Miller offers the following advice for property owners who want to understand the opportunities available to them or who are hoping to navigate the rule changes. 

1. Explore opportunities 

Miller says homeowners should follow developments and explore potential opportunities that may be open to them to subdivide, develop or convert from cross lease to freehold title (if it is of benefit to you). 

“Seek advice from a surveyor/planner so you understand the possible value of your property.” 

2. Read the rules 

There's always a bit of ambiguity when rules change, but that shouldn't give property owners a license to play fast and loose with regulations. 

"Just because more development options are available for certain sites doesn't mean the possibilities are endless. There are still limitations on what can be done. So, stay within the building controls, follow the rules about boundaries and read up on building consents," Miller says. 

3. Keep neighbours informed 

The sooner a dialogue is opened between neighbours about development plans, the sooner both parties can prepare a solution. Almost everyone is willing to negotiate in good faith should the situation call for it. 

"Talk to your neighbours. Find out what they may be planning and how it will impact your side of the fence. If your properties are on a cross lease, and the neighbour (shareholder) doesn't like your plans, it pays to keep in mind that they can legally block the development. 

"If your plan is to subdivide, then some sort of compensation may be needed. Whatever it is, arguably, the key is to open the dialogue early and keep it open," Miller says. 

4. Research threats 

Miller says that in the same way homeowners should be thinking about opportunities, they should also be aware of potential threats to their property values. 

"Research the properties around you to make sure you understand what potential changes could occur next year. If you conclude that the neighbours may develop their land and that it may affect your property values, then now might be the time to sell and move on," Miller said. 

For more information visit www.drewmiller.co.nz