Thumbs up for government’s housing boost in budget

HOUSING industry lobby groups have welcomed the government’s pledge to fund prefab homes and an expansion of the Help to Buy scheme.

The $54 million funding announced as part of the Federal Budget got the thumbs up from the Property Council and Housing Industry Association (HIA).

Property Council CEO Mike Zorbas said: “Alongside planning reform and more skilled workers, boosting prefabricated and modular home construction hits the innovation sweet spot.

“Now is the time to back in housing innovation. It is less than a month since the Productivity Commission showed we build half as many homes per hour as we did in 1995.

“Prefabricated and modular homes can be built to consistently high standards, faster and with strong sustainability and safety credentials.

“To achieve the scale of supply Australia needs, the sector needs a consistent demand pipeline and a supportive regulatory environment.

“This funding will lift the sustainable pipeline of work, giving innovative public and private investors further confidence to expand production.

“The Federal government is already working with state counterparts to reduce regulatory barriers in the sector, and a certification process to streamline approvals is the icing on top.”

HIA managing director Jocelyn Martin said: “These initiatives reflect a positive shift in recognising the need for innovation and affordability.

“The $54 million commitment to boost Australia’s capacity in prefabricated and modular housing is a welcome investment in modern construction methods that can support greater innovation across the sector and fast track some housing forms.

“The development of a voluntary national certification scheme is something that was a primary recommendation from our report to remove roadblocks to streamline approvals and provide regulatory certainty to support innovation in the sector.

“The expansion of the Help to Buy scheme is also something we have called for to give more first home buyers a real chance to enter the market.”

“Lifting income thresholds and linking property caps to average house prices will better reflect market conditions and broaden the potential uptake of this scheme across more regions.”

“But while these initiatives are encouraging, they must be backed by broader and deeper reforms if we are to meet the national target of 1.2 million new homes over five years.

“Delays in development assessment and access to build ready land continue to be one of the biggest barriers to housing supply.

“Workforce shortages are also holding the industry back. More targeted investment in training and attracting skilled workers into residential construction is essential to lifting output.

“We urge the Government to continue to work with industry on streamlining housing regulation and reducing duplication across state and federal levels—particularly for building approvals, environmental assessments and housing design compliance.

“We’re pleased to see housing remaining high on the national agenda.”

Find out what else industry bodies have on their pre-election wish lists in an Australian Conveyancer special series of reports here