How will House Club make cheaper houses?

How will House Club make cheaper houses?

A:

Most of the excessive cost of New Zealand houses is in the land cost.  Added to that is building materials are controlled by a limited number of suppliers - and then there are restrictions on who can build what. All of these reasons are due to excessive regulation.

The crazy land costs are caused by the RMA and restrictive zoning usually to satisfy council planners and politicians preference for a "compact urban form". In markets like Auckland this can add over $500K to the cost of a house. What House Club does is zone its own land - so the huge windfall profits made for landowners or developers when a council rezones land from rural to housing - are instead savings to House Club members. Only House Club can rezone land instantly - councils will still need to go through the RMA and district plan process. This puts the House Club members with all the power - and the landowners and landbankers are now on the back foot. To see the prices of sections in a country which doesn't restrict land supply, check out how low prices are in the US for new housing here

House Club will also not require houses built in a Club Zone to comply to the Building Act, NZ Building Code or any New Zealand standards. All of these force you to buy locally made or approved products which are usually controlled by monopolies or cartels. Instead Club Zone houses can use anything they like. So low priced products like amazing windows from Eastern Europe or plasterboard from China is fine in our houses. Or complete kitsets from Australia or Scandinavia are all acceptable in the Club Zone

Further to this Club Zone houses can be built by anyone. We have no "Restricted Building Work" and no requirement for designers or builders to be LBP's (Licensed Building Pratictioners). This will mean the Club Zone will be the only place where non-LBP holders (the majority of builders in New Zealand) can do the full range of building work. This will bring some of the very experienced older builders out of retirement - there are thousands who have simply given up trying to deal with endless Government and council interference.

The Club Zone will also have much simpler health and safety rules. So Worksafe NZ will not have full jusidiction in the zones. There will be more workers building roads and less traffic control people getting in the way. 

None if this is particuarly radical - it is simply a winding back to times when building houses was simple and they cost much less. The need for all these regulations is a recent thing and House Club members are happy to go back to the old ways and have a much cheaper house built by much happier people!

 

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  • Tim Makarios
    commented 2020-01-28 17:35:00 +1300
    This sounds quite promising, but maybe too good to be true.

    “Only House Club can rezone land instantly”. How did House Club get the authority to do so, and to avoid all the other rules?