The Road to Reform: Five Stages of the Retirement Villages Act Review (2020–2025)

The Retirement Villages Act 2003 — the law that governs New Zealand’s retirement sector — is undergoing its most significant review in 20 years. The review was prompted by growing recognition that the sector has evolved, and that legislation may no longer reflect its complexity or scale.

Here’s how the review has unfolded to-date, and what’s next as it heads towards a decisive phase in 2025-26.

Stage 1: The call for change (2020–2021)

The push for reform began with the retirement commission.

The catalyst: Te Ara Ahunga Ora Retirement Commission (formerly the CFFC) found the Act outdated and out of step with a modern, fast-growing industry.

Key action: In 2020, the Commission released its White Paper, Retirement Villages Legislative Framework: Assessment and Options for Change, which formally identified key issues and recommended a full policy review.

Outcome: The consultation drew nearly 3,300 submissions, prompting the Ministry of Housing and Urban Development (HUD) to launch a comprehensive review of the Act and its associated regulations.

Stage 2: Government consultation (2023)

With a mandate for reform confirmed, responsibility shifted to HUD.

Key document: In August 2023, HUD released Review of the Retirement Villages Act 2003: Options for Change. It sought public feedback across all stages of village life — moving in (contracts and disclosure), living in (maintenance and disputes), and moving out (capital repayment).

Public response: By the November 2023 deadline, HUD had received over 11,000 submissions, reflecting broad engagement from residents, families, operators, lawyers, and advocacy groups. Feedback covered a wide range of views, from strong support for reform to concern about the scale and impact of changes.

Read more about key developments during stage 2 in the Village Guide Industry Insights from September 2023.

Stage 3: Focusing on priorities (late 2024)

Following the consultation, the Government streamlined the review to focus on areas of greatest concern and broad consensus.

The shift: In October 2024, the Government announced three core priorities:

• Maintenance and repairs: Clarifying who pays for repairs to operator-owned chattels and fixtures.

Note that here at Amberley Country Estate the Village pays for the repair or replacement of chattels and fixtures.

• Complaints and disputes: Replacing the criticised disputes process with an independent, more effective scheme.

• Capital repayment: Exploring ways to encourage or require faster repayment when a resident leaves a village.

Exclusions: Broader issues, such as minimum building standards, were set aside to keep focus on reforms likely to deliver the biggest immediate benefits.

While building standards were excluded, here at Amberley Country Estate, our energy efficient homes have exceeded the building code from the inception of our village. Our villa specification is also superior to most other villages.  

Stage 4: Policy development (2025 – Current)

As of late October 2025, the review is in its final policy development phase before legislation is drafted.

Policy progress: Throughout 2025, HUD and the Retirement Commission refined proposals on the three priority areas. Earlier in the year, the Commission delivered a proposed design for a new, independent complaints and disputes resolution scheme.

Critical juncture: The Government has signalled an accelerated timeline, with Cabinet expected to decide on final legislative changes between November and December 2025. These decisions will define the scope of the amendments, particularly around the debated issue of mandatory capital-repayment timeframes.

Stage 5: Legislation implementation (2026 and beyond)

Once Cabinet decisions are made, the reforms will move from policy to law.

Next steps: Legislative drafting is expected to begin in early 2026, with an amendment bill likely to reach Parliament by July.

The future: After the bill passes, operators and residents will enter a transition period to adjust to new legal requirements, updated Codes of Practice, and the new disputes resolution scheme. The outcome will show how effectively the reforms modernise the Act and balance the interests of residents, operators, and policymakers across the sector.