Local councils are pleased the government's moving to clear up issues around increasing housing density.

Urban Development Minister Phil Twyford has announced a new approach to urban planning - requiring councils to loosen restrictive planning rules.

The Government is proposing scrapping many unnecessary restrictions on the development of higher-density housing, such as apartment blocks, to allow cities to grow up.

Local Government NZ's Stuart Crosby told Mike Hosking the old system wasn't working.

"The new one proposed by this government is highly aspirational and provides more clarity with protecting productive soils"

Crosby says it's a good policy that takes other important issues into account.

"It all sounds good, but the government needs to make sure councils have the right tools for the job."

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