Christopher Luxon confirms Auckland housing plan retreat after ‘dynamic’ talks with Chris Bishop

Monday, 19 January 2026

Prime Minister Christopher Luxon has confirmed the Government is set to walk back its approach to housing intensification in Auckland.

Luxon said he had been having “very dynamic” discussions with Housing Minister Chris Bishop, who was driving the controversial policy.

The Post revealed last week that Luxon was preparing to make a captain’s call that would undercut a flagship policy championed by Bishop ‒ one that forced Auckland Council to plan for up to two million homes.

That figure became a lightning rod for opposition, triggering intense debate and a heated consultation process last year.

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Speaking on Monday while delivering his State of the Nation address at the soon-to-be-opened New Zealand International Convention Centre, Luxon said the Government had been monitoring the council’s planning process — known as Plan Change 120 (PC120) ‒ “very closely”.

“It's clear to us that change is needed and we're prepared to make that change. I don't think there's a problem when you actually say, ‘I’ve listened to feedback and I'm going to do something different about it’.”

Luxon described housing intensification as a “really important” and “very sensitive” issue.

The latest shift will be the third major change imposed on Auckland in recent years.

In opposition, National ‒ led on housing by Nicola Willis ‒ supported the “3x3” rules, which would have allowed intensification almost everywhere.

Luxon later backtracked after taking over the party leadership, a reversal that became PC120. Auckland Council has so far spent almost $13 million consulting on and working towards those planning rules.

Luxon said he wanted the council to continue running its consultation process.

“Clearly, there's been a huge amount of feedback. Clearly, things are going to need to change in our response as well. And so we’ve been very upfront about that.”

Luxon denied he was going over Bishop’s head and declined to spell out what the changes would be.

“We believe very strongly in densifying over transport hubs … We also need to open up greenfields.”

Several options remain open to the Government, including reducing the level of intensification required ‒ a move that would likely require a law change and could affect housing affordability, as fewer homes allowed means increased pressure on supply.

Alternatively, the central government could issue a directive to the independent hearings panel as it is already considering PC120.

Auckland councillor Christine Fletcher said “the key issue” was the requirement for Auckland to enable two million homes.

“It's courageous of them to acknowledge that there needs to be some further work on this, and consequently, I really welcome it ‒ but the devil is going to be in the detail.”

Fletcher said she had spoken with MPs who told her they had not fully understood the impact of the planning changes.

“I think both Labour and National have acted in haste, and often when you act in haste, you repent at leisure.

“I hope we can find some sort of consensus across the political spectrum, because it’s important for confidence and stability in the Auckland housing market that we can see, with some certainty, what the rules are going to be going forward.”