Housing and Urban Development Minister Phil Twyford said yesterday SHAs ''failed to make housing more affordable''.
Making the point SHA legislation came from the previous government, Mr Twyford said the legislation would not be extended beyond the expiry date of September 16.
''Although the law had increased housing supply in some areas, it had not led to more affordable housing,'' Mr Twyford said.
''In some cases houses were 5% more expensive inside special housing areas than outside them.
''Our Government recently considered extending this legislation, but on balance, the benefits did not outweigh the costs.''
The Queenstown Lakes District Council has approved nine SHAs with about 1700 sections.
However, last week it deferred making a decision on a controversial 156-lot Laurel Hills development along Ladies Mile.
A 400-lot SHA at Lake Hawea, approved by the council, has still to be signed off by the Government.
Mr Twyford said councils in high-growth areas had access to the $1billion housing innovation fund that provided 10-year interest free loans to build infrastructure needed for new housing.
The Government was also setting up a housing and urban development authority to help fast-track urban development projects.
