Here’s the latest on the New Zealand Government’s position regarding Land Use Capability (LUC) Class 3 land under the National Policy Statement for Highly Productive Land (NPS‑HPL):

 What’s happening with LUC 3 land?

• • Cabinet has agreed to remove LUC 3 land from the NPS‐HPL restrictions. This change is part of Phase 2 of the government’s Resource Management Act reforms and aligns with the coalition’s housing‑supply priorities.
  • LUC 1 and 2 land protections remain unchanged, ensuring prime soils continue to benefit from high protection.
  • The removal of LUC 3 currently applies from the amended NPS‑HPL’s commencement. This move could free up land area roughly equivalent to the entire Waikato region for development.

Next steps and timeline:

• The proposed amendments, including LUC 3 removal, are currently out for public consultation until 27 July 2025.
• Regional mapping deadlines for identifying highly productive land (now LUC 1-2) are being extended or paused, to allow councils to align with the revised NPS‑HPL when finalised.
• Parallel discussions are underway about introducing “special agriculture areas” – targeted protections for regions like Pukekohe and Horowhenua, where LUC 3 land is nonetheless important for horticulture.

In summary:

• The Government intends to declassify LUC 3 from NPS‑HPL protections, enabling more flexible use, subdivision, and rezoning on these lands.
• LUC 1 and 2 remain protected as highly productive land.
• Final decisions await consultation outcomes and the formal amendment of the NPS‑HPL, expected later in 2025.
• Councils are delaying regional mapping updates until the new provisions are confirmed.

What it means for you:

• Landowners and developers on LUC 3 land may see reduced regulatory hurdles and greater development potential in coming months.
• Surveyors and planners should closely monitor consultation outcomes and regional policy statements, which are still in flux.
• Keep an eye on the 27 July deadline – the final shape of the NPS‑HPL will hinge on submissions received by this date.
• Watch for special ag‑zones: where significant horticultural value exists, councils may still choose to protect those areas even if they’re LUC 3.