Opportunities on the horizon for Rural Landowners: What you should know about the proposed Land Use Class 3 changes
- Giana Pedrazza
- Jul 29
- 3 min read
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We may soon be seeing a significant change to the landscape of rural land development in New Zealand. And if you own property which is wholly or partly classified as Land Use Capability (LUC) Class 3, you will be at the forefront of these proposed changes which were put forward by the New Zealand Government, presenting you with potential new opportunities for land development.
As always, the Buckton team is here to walk you through the proposed change and give you some expert insight into how this may, or may not, impact your property.
But first, what is Land Use Class 3 (LUC 3)?
In New Zealand, the LUC system has been used since the 1950s to achieve sustainable land development and management, specifically on rural land. Under the system, rural land is rated on its productive potential (1-8), based on the assessment of factors which include slope, soil type and quality, drainage, vegetation, and climate to name a few. From there, the land is classified to reflect what farming and other rural activities can be undertaken.
LUC 3 land is land with moderate limitations for arable use, but suitable for cultivated crops, pasture, or forestry.
At present rural land, which is classified as LUC Class 1, 2 and 3, is protected under the National Policy Statement for Highly Productive Land (NPS-HPL) so unnecessary fragmentation doesn’t occur, and to retain our country’s ability to grow high quality food. This has meant strict limitations on subdivision and non-agricultural development of such land. However, the New Zealand Government has recently proposed the removal of the current protections on LUC 3 land under the NPS-HPL.
What it means if those changes are implemented to your property?
This change, if implemented, means that your LUC 3 property could see current barriers to rural subdivision and development be lifted, allowing for what is called greenfield development (development on previously undeveloped land) in some zones. Housing demand continues to rise, and the government requires access to land which was previously unavailable. This could be a pivotal moment for many property owners who currently have restrictions in place – land could be subdivided or potentially in the future rezoned for homes or lifestyle blocks and could also become more appealing for developers or investors.
There is also a new planning category that is being proposed which may continue to protect some LUC 3 land. This new category would be called the Special Agricultural Areas and allows for LUC 3 land which plays a key role in food production to remain protected under the NPS-HPL. These areas are still be defined.
This proposal is complex. As always, our team are available to assist you with:
Understanding your land’s classification under the LUC system.
Wading through the complexities of the proposal to better understand the potential impact on your property.
Preparing and lodging formal submissions on your behalf.
Assisting with rezoning or development opportunities in the future.
Please get in touch with the team at any time to discuss how we can help keep your best interests at the forefront during this process.
How to stay informed
These proposed changes are still in draft form and the finer details are still being considered. Therefore, it’s important to stay informed and up to date on the progress of this proposal as it unfolds.
You can read more about the proposed changes by clicking on this link:
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