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{{propApi.successMessage}} {{region}} Change locationFurther reforms needed to get more keys in doors now
Further reforms needed to get more keys in doors now
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“Whilst HIA supports the establishment of the HDA, you will not see any keys in doors for several years and it does not address the barriers crippling the housing industry right now”.
“ABS data released yesterday shows that housing approvals continue to decline in NSW with no signs of a recovery in sight. Broader reforms are needed to encourage more detached and medium density residential projects which can be constructed faster.”
“Recent planning reforms announced by the NSW Government including the low and mid-rise housing reforms were supposed to deliver 112,000 homes over 5 years. To date, these reforms have been largely ineffective in delivering any new housing,“ stated Mr Armitage.
“Stage 1 of the reforms permitting dual occupancies and semi-detached homes in the R2 low-density zone introduced last July are not workable because the policy lacks any supporting planning controls. These reforms rely on existing council rules which are too restrictive to enable developments to occur. The Government is also yet to release Stage 2 of the reforms for mid-rise housing around town centres and stations more than 12 months after the policy was originally proposed.”
Planning controls though are just one aspect of the problem. “Right now there are too many obstacles to new housing throughout the development process,“ continued Mr Armitage.
This includes:
- Developer charges such as the Housing and Productivity Contribution, council infrastructure contributions, and Sydney Water Development Servicing Plan fees which combined can exceed $130,000 for every new housing lot in parts of Western Sydney.
- Changes to development standards which reduce the ability to access the fast track complying development pathway meaning slower and more complex approvals.
- Excessive planning controls and onerous conditions of approval imposed by councils.
- Amendments to the National Construction Code which make housing more expensive to build.
“At the current rate there is no way we will build anywhere near the 377,000 new homes required to meet our housing targets. It is time for the NSW Government to get serious and take action to address the current low levels of building activity in NSW” concluded Mr Armitage.
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Productivity Commission backs HIA calls for major regulation overhaul
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Building approvals pick up 2024/25
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