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“The Victorian government released its Housing Statement last year and has a target of building 800,000 homes in ten years. HIA supports the government’s objective to increase housing supply by building more homes but the uncertainty on future building insurance and contract rules is causing unnecessary stress for the industry.”
“It was confirmed yesterday that over the past 12 months there has been a significant decline in housing approvals across the state. New home sales have also been weak. This makes the government’s target more difficult to achieve.”
“Home builders want the Victorian government to achieve the target. They want to build more homes, but they need to have government policy settings that help them remain financially stable and secure.”
“First, home builders and consumers need better access to domestic building insurance (DBI). Recent premium increases and restrictions on builder’s capacity to get DBI are preventing some consumers and builders from being able to enter into home building and renovation contracts.”
“Second, the legislation that regulates the contracts between consumers and builders is antiquated and not fit for purpose. This legislation not only fails to adequately protect consumers but also imposes unnecessary restrictions on home builders.“
“The government completed a public consultation process on a review of the Domestic Building Contracts Act over five months ago. Since then, we have seen little to no progress on this review.”
“It is acknowledged that the current environment of low sales and approvals is caused mainly by high interest rates and low consumer confidence. This will however change and as Victoria’s population continues to grow and pent-up demand for housing increases. “
“When consumer confidence returns and sales increase the Victorian government needs to ensure that better domestic building insurance arrangements and home building contract legislation are already in place to support both homeowners and builders” concluded Mr Ryan.
“The RBA decision to keep interest rates in restrictive territory today will not stop the improvement in leading indicators of future home building,” stated HIA Senior Economist Tom Devitt.
In mid-June 2025, the NSW Premier released the Housing and Productivity Contribution (HPC) Works-in-Kind Guideline for public consultation.
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
Housing Industry Association welcomes today’s announcement by the Cook Labor Government to review key aspects of the home building contracts legislation and provide the building regulator with additional powers to work with builders in distress.