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HIA Tasmania Executive Director Benjamin Price said granny flats are one of the quickest and most sensible ways to boost housing supply, particularly in established suburbs close to jobs, schools and services.
“Bigger granny flats mean bigger choice, and lifting the size limit helps get unnecessary regulation out of the way of sensible housing options,” Mr Price said.
“This change gives homeowners and builders the flexibility to build a genuinely usable second home that meets real market demand.”
Mr Price said the national experience showed exactly what happens when planning barriers are removed.
“Nationally, granny flat construction has surged, with HIA analysis showing members expect to build around ten times more granny flats this year than they did in 2022,” he said.
“Too often pointless red tape gets in the way of sensible housing choices, and this change clears a path for more homes to actually get built.
“With land supply constrained and construction capacity under pressure, we need to make better use of the land we already have. Granny flats do exactly that.”
Mr Price said increasing size limits made granny flats far more practical for renters, downsizers and multigenerational families, while also supporting local builders and tradies.
“Larger granny flats mean more choice for families, more rental supply, and more work flowing through the residential building sector,” he said.
“If we’re serious about housing supply, then freeing up infill opportunities is simply common sense.”
Mr Price said Tasmania was now well placed compared to other states.
“At 90 square metres, this puts Tasmania at the very top end nationally for granny flat size, giving families and builders flexibility you simply don’t see in most other states.”
HIA said granny flats should be treated as a core part of the housing solution and called on governments to continue removing barriers that slow small scale, shovel ready projects.
“The fastest way to deliver more homes is to let people build them where infrastructure already exists,” Mr Price said.
“Granny flats are a practical, low impact way to do exactly that.”
The Housing Industry Association in Tasmania has welcomed moves to cut red tape around granny flats, saying larger granny flats will unlock thousands of new homes by making better use of existing land.
The Housing Industry Association’s Chief Economist, Tim Reardon, said the Reserve Bank of Australia’s latest decision to increase interest rates reflects the ongoing challenge of bringing inflation under control, but warned that higher rates will further restrict the supply of new homes.
HIA responded to the Consultation Paper on the Review of the Amended Unfair Contract Terms Protections. The Consultation Paper canvasses a range of matters associated with the expansion of the UCT provisions in 2023 for consumers and small businesses.
Standing on a construction site with work well underway, the Housing Industry Association (HIA) Tasmania today joined Treasurer Eric Abetz MP in welcoming the impact of the Tasmanian Government’s First Home Owner Grant, recently tripled to $30,000, which is already helping more Tasmanians build their first home.