By Kaaren Joubert, Planning Manager, Cato Bolam Consultants.
If you own Land Use Capability (LUC) Class 3 land (moderately productive rural land), changes may be on the way.
The Government is proposing to remove LUC 3 restrictions under the National Policy Statement for Highly Productive Land (NPS-HPL). The proposal is currently open for consultation until 27 July. Now’s a good time to understand what’s being considered.
The New Zealand Government is proposing important changes to the National Policy Statement for Highly Productive Land (NPS-HPL). These changes could significantly affect rural landowners—especially those who own Land Use Capability Class 3 (LUC 3) land. LUC 3 is rural zoned land that has moderate limitations, restricting crop types and intensity of cultivation, suitable for cropping, viticulture (grapevines), berry fruit, pastoralism, tree crops and forestry.
What’s Being Proposed?
Currently, Land Use Capability Class 1, 2 and 3 land located outside an urban or rural lifestyle zone is protected under the NPS-HPL to ensure it remains available for farming and other land-based primary production. However, the Government is now proposing to remove LUC 3 land from these protections.
This means that LUC 3 land may become available for urban development or subdivision of rural land, particularly for new housing subdivisions on previously undeveloped land (known as greenfield development). The aim is to create additional housing supply quickly, without waiting for local councils to complete detailed mapping of highly productive land.
At the same time, the Government wants to ensure that especially valuable food-growing regions, such as Pukekohe and Horowhenua, remain protected. To do this, they are proposing a new planning category called Special Agricultural Areas, which would retain protection even if other LUC 3 land is released for development.
What Could This Mean for Rural Landowners?
If you are a rural landowner with LUC 3 land, these changes could open up new possibilities—but also bring uncertainty. Key considerations include:
- More development options – You may gain new opportunities to subdivide or rezone your land for housing or rural lifestyle use, depending on the district plan for your area.
- Increased land value – With fewer restrictions, LUC 3 land could become more attractive for development and investment.
- Potential limitations – If your land is located in or near a proposed Special Agricultural Area, it may remain protected. The specific boundaries and criteria are still being worked out, so staying informed is critical.
Have Your Say
The Government is currently seeking feedback on these proposed changes. If you want to influence the outcome, a well-informed submission could make all the difference.
Submissions close on 27 July 2025.
You can review the full proposal and make a submission here:
👉 consult.environment.govt.nz/resource-management/infrastructure-development-primary-sector-nd
How Cato Bolam Can Support You
These regulatory changes may seem complex, but Cato Bolam’s expert planning team is here to help rural landowners navigate them. We can:
- Assess how the proposals affect your land
- Help you understand the planning implications
- Prepare and lodge a formal submission on your behalf
- Assist with future rezoning or development proposals
If you’re unsure of your Land Use Capability classification, we can help. Cato Bolam can facilitate property-specific LUC assessments, including site inspections and technical advice, to help you understand your land’s classification and what it means under the changing rules.
Stay Informed and Be Proactive
The proposed changes to the NPS-HPL are part of a broader transformation of New Zealand’s planning and resource management system. Rural landowners who act early will be best positioned to protect their interests and influence or capitalise on future opportunities.
If you own LUC 3 land or need it confirmed and want clarity on how these changes could affect you, get in touch with Cato Bolam today.
