Following on from our previous updates on the shift away from the Medium Density Residential Standards (MDRS) and the impending replacement of Plan Change 78 (PC78), the transition process continues, creating severe and immediate regulatory consequences for property owners and developers. You can read the two articles from the links below:

The RMA Reform Highlight Reel: The Latest Changes and What They Mean for Development

RMA Reform Momentum Continues: Auckland Council Advances Plan Change 120

Immediate Loss of MDRS Rights

The single most critical event since our last update was the partial withdrawal of PC78, which took legal effect on 9 October 2025.

This action immediately eliminated the ability to rely on the blanket MDRS rules that allowed up to three homes of three storeys as a permitted activity. Crucially, simply holding a resource consent or a building consent was not enough to protect development rights. Only the lawful establishment of a dwelling or the successful submission of a Certificate of Compliance (CoC) application before the 9 October deadline secured a project’s future under the old rules.

The Financial Fallout

The change and Auckland Council’s well-publicised legal position has created significant financial trauma. Media reports highlight that approximately 700 property owners were left in regulatory “limbo,” facing exposure to millions of dollars in stalled costs and sunk capital.

This issue is not theoretical and we know this because one of our clients was directly affected. They had already spent over $100,000 on design and preparatory work, only to have their project halted just days before construction was due to commence. This demonstrates the real-world impact of the changes.

The need for a CoC as the only possible backstop, prepared under extreme time pressure, further shifted the burden entirely onto the private sector.

Auckland Council’s Discretion

The changes have been accompanied by a concerted effort by Auckland Council to frame the narrative and deflect the blame for the transitional chaos back to central government. However, Auckland Council possessed the discretion to provide greater certainty to affected projects that had previously been granted approval.

The core of the issue is that many property owners held valid Resource Consents or Building Consents that relied entirely on the MDRS permitted activity rules, but the political action to withdraw PC78 made those underlying rules disappear.

Auckland Council’s discretion lies in its power to recognise and honour previous approvals. Where a building consent was lawfully issued prior to the 9 October 2025 withdrawal, the protections afforded by Section 10B of the Resource Management Act 1991 should legally preserve the right to proceed with the building work. Auckland Council has the wide-ranging discretion and power to provide assurance to these previously approved projects by honouring its previously approved resource consents, thereby resolving much of the reported uncertainty and mitigating the financial risk faced by developers who acted in good faith on the previous rules.

Your Last Chance to Influence Plan Change 120

The future of Auckland’s zoning will now be decided through the PC120 process.

Proposed PC120 – Housing Intensification and Resilience will be publicly notified on 3 November 2025 and the submission period will close on 19 December 2025.

All property owners should, by now, have received a letter giving them advance notice of the PC120 notification. This is the final opportunity for property owners, developers, and affected communities to formally influence the shape of the Unitary Plan.
It is vital to consider immediately if PC120 will impact your property.

If a submission is necessary to protect or enhance the value of your asset, our team can help you prepare and lodge a robust response before the 19 December 2025 deadline.