Streamlining land supply an important housing affordability step

“Housing affordability must remain a key objective to support and encourage first home buyers to enter the market,” says the Housing Industry Association.

“One of the best ways to address housing affordability is to increase land supply,” said Fiona Nield HIA’s Victorian Executive Director.

“A lack of supply of new land is a core constraint to supplying housing that is affordable for new home buyers.

“HIA has long advocated for more efficient delivery of shovel ready land and reduced taxation and charges associated with new home building.

“The current shortage of land across metropolitan Melbourne is starting to bite, resulting in additional cost to new home buyers. This needs to be urgently addressed.”

Speaking in response to Opposition Leaders Matthew Guy’s Plan to tackle house affordability, Ms Nield said “this is a positive development, a plan that increases the supply of land for new homes, and we would hope reduces punitive taxes and charges imposed on that new land, which will flow through to new home buyers as lower upfront costs.

“Fast tracking land release is a key aspect to addressing affordability.

“Current constraints are resulting in delays of up to two years from when a homebuyer signs a contract with a builder to when their new home is built.

“More efficient planning processes will also help together with improved access to land labour and resources.

“A dedicated area of government to support housing supply is also essential to the future of the Victorian economy.

“We are in a unique situation in Victoria where the housing industry is currently producing a record number of homes and plays a significant role in the Victorian economy.

“The economic benefits of the housing industry are significant with one in ten people employed in Victoria in the construction industry.

“Importantly we need to address housing affordability so all Victorians can have a home to come to at the end of each day,” concluded Ms Nield.

Source: HIA