HIA Executive Director Tasmania, Benjamin Price, said the announcement by Premier Jeremy Rockliff directly addresses one of the biggest barriers to modern construction.

“This is a practical step to help unlock additional housing supply, particularly from more innovative construction methods.

“Access to finance has been a major hurdle for modular and prefabricated homes, because traditional lending models don’t align with how these homes are built.

Mr Price said the initiative would help remove key constraints that have slowed the uptake of innovative building methods.

“The evidence is clear, financing arrangements, contract structures and inspection regimes have held back innovation in our sector.

“Measures like this will help remove those barriers and allow the industry to do what it does best and deliver more homes, faster.

“This is a welcome step that will unlock new housing supply, but it must be matched by further action to reduce the regulatory and compliance burdens that continue to constrain modular construction.

Modular construction plays a critical role in boosting supply, particularly in regional areas where traditional builds can be slower and more complex. “For regional Tasmania, modular housing has real potential. It allows homes to be delivered quickly and efficiently into communities that need them most,” Mr Price said.

Mr Price said the announcement also reflects growing momentum across governments to support innovation in housing delivery.

“We’re seeing increasing recognition that innovation is essential to addressing housing constraints, and today’s announcement is a strong step in the right direction.”

HIA’s 2019 ‘Regulatory barriers associated with prefabricated and modular construction’ report identified these barriers early. “As HIA’s research has shown for many years, addressing regulatory barriers will be key to unlocking the full benefits of modular construction and delivering more homes, faster.”

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