Major change for 800,000 Aussie homeowners facing 'stressful' issue: 'Will push up the price'
One Aussie state is on the cusp of a major change to the construction industry which could see power put back into the hands of homeowners fighting against unscrupulous building practices.
The Building Legislation Amendment (Buyer Protections) Bill, put forward by the Jacinta Allan government in Victoria, will see a spate of changes to ensure better protections against dodgy builders. While some consider it "really good news", others believe it will cripple the industry and end up costing Aussies more.
It comes as the state has set ambitious targets to fast-track construction and build 800,000 new houses over the next decade, however many have decried dodgy builders who cut costs and "scam" homeowners.
High-profile site inspector Zeher Khalil, known as the TikTok Inspector, sees firsthand bad practices in the residential construction industry and told Yahoo he believes the new law is going to be game-changing for hard-hit homeowners. "I think the new build industry has a pretty bad reputation at the moment," he told Yahoo and the bill will put some control back into the hands of owners.
However prominent building and home-improvement boss Scott Challen told Yahoo News he agrees homeowners need a better deal fighting unscrupulous builders, but says an increase in regulation will only cost homebuyers more in the long run.
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The proposed reforms will look to improve consumer protection in the building industry.
They include:
Establishment of a new regulatory body called the Building and Plumbing Commission
Homeowners will be able to claim insurance immediately without the need to prove builder insolvency or disappearance
Developers will be required to hold a 3% bond for two years
Builders can be held liable for defects for up to 10 years
Explaining the major changes, Khalil says it gives homeowners greater power to contest defects on newly built homes.
"At the moment, to get action, you have to go to court. That's how bad it is. And you're talking about two years away, you know, hearings and, it's just a big, big mess," he said, adding it's something that is "very stressful", as well as costly and time-consuming.
"The builders just hope that the homeowners don't go to those lengths and they can get away with it," he said. Now, authorities can force builders to make repairs before it has to go to court.
Khalil admits there are good builders out there who will fix mistakes when they arise, there are others who take shortcuts "on purpose".
"What I'm finding, and it's the case with a lot of the videos we make, is actual people out there trying to scam the homeowner," he said, referring to a recent case where a builder used polystyrene foam instead of concrete on the facade of a home.
He believes that builders will be "fully against" the bill. "A lot of builders will go bust because there'll be a lot of claims," he said.
Challen agrees "homeowners need better protections", but doesn't think Victoria's solution is the right one.
He said some of the build quality he's seen in Victoria has been "really sub-par" and the industry needs "some kind of reform" but argues that the "centralisation of power in the way it's currently going isn't going to be that reform".
"This regulation will push the price of housing up and it won't deliver homes faster for people," Scott said.
Scott believes that Victoria's new rules will impact the rest of Australia, because neighbouring states will be compelled to follow suit. "It has implications for the rest of the country because Victoria sets the standard," he said.
The bill is currently under consideration in the Victorian parliament.
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