“The introduction of the Building and Plumbing Commission as an integrated regulator for the building industry would be the most significant change and how it exercises its powers will be critical to the success or otherwise of the reforms.

“The proposed reforms pave the way towards providing greater certainty for prospective homeowners looking to embark on a new building project and should in turn provide builders with capacity to deliver more homes for Victorians.

“The current system for regulating home building in Victoria has become increasingly fragmented, outdated and overly complex for builders and consumers to navigate. 

“The domestic building insurance (DBI) system, for example, has done a reasonable job in protecting consumers building or renovating a house, but is long overdue for review and reform and needs to be more contemporary and fit for purpose in today’s environment.   

“Another key area requiring reform is the cost of domestic building insurance premiums in Victoria, which have increased substantially in the past two years and is undermining housing affordability.

“Home builders are also finding access to DBI policies increasingly difficult to obtain which is limiting their capacity to take on more work.  Consumers are also finding that their choice of builder or finance is being questioned by DBI insurers.

“This is a major issue for both industry and the Victorian government in the ability to deliver more homes as part of the Victorian government’s ambitious housing agenda.

“It is therefore pleasing to see the reforms announced today that seek to address these matters.

“At the same time HIA remains concerned with some aspects of the changes announced today. This includes the move towards a ‘first resort’ DBI system.

“This approach needs further detailed consideration to ensure that this does not just add more cost and complexity to the home building process. It also needs to be supported by a fair and fast dispute resolution system.

“The suitability of the introduction of a developer bond scheme for homes not covered by DBI is also questionable as a similar scheme introduced in New South Wales has struggled in its operation and effectiveness.

“Today’s announcements provide some important initiatives to improve consumer and home builder confidence, though more detailed industry consultation is needed to ensure that the right balance is achieved.

“HIA will continue working with the Victorian government on an effective package of building reforms that seeks to strike this right balance for both consumers and builders,” concluded Mr Ryan.

For more information please contact: