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What legal or practical limitations, if any, apply to a landowner's ability to develop, subdivide, mortgage, insure, or sell a property that is wholly or partly subject to a notice of requirement or designation for which no construction funding is allocated?

Answered Question 37308 (2026)
Question published
Reply lodged

Asked by

Tangi Utikere

Member for Palmerston North · Labour Party

Question

  • What legal or practical limitations, if any, apply to a landowner's ability to develop, subdivide, mortgage, insure, or sell a property that is wholly or partly subject to a notice of requirement or designation for which no construction funding is allocated?

Answered by

Hon Chris Bishop

Member for Hutt South · National Party · Minister of Transport

Answer

I am advised that a notice of requirement or designation does not impose any mortgage or insurance limitations on a landowner. Where their property is subject to a designation, landowners may continue to undertake existing and lawful uses of that property. They may not do anything (including subdividing or changing the character, intensity, or scale of the use of the land) that would prevent or hinder the public work to which the designation relates, without prior written consent from NZTA. Each landowner’s circumstances are different, and NZTA encourages early contact from landowners to discuss a proposed subdivision or development. Landowners are free to sell impacted properties in the usual course. Where they try to sell but are unable to do so, discussions about acquisition by the Crown may be undertaken. The allocation of construction funding does not change these considerations.