Reforms Announced for NSW's Home Building Act

The NSW Department of Fair Trading has announced a number of changes to the state's Home Building Act 1989, which could make the process of building a home more streamlined and fairer for homeowners.

According to the Minister of Fair Trading Anthony Roberts, the old Home Building Act became "too complex", resulting in many disputes occurring between builders and home owners.

This has led the minister to propose reforms to improve the home building and construction process, hopefully resulting in a higher number of people opting to build properties.

"The proposed reforms cover various aspects of the home building legislation; dispute resolution, statutory warranties, home building contracts, owner-builders obligations, home warranty insurance and licensing," said Mr Roberts in a September 24 statement.

Other aspects in the proposed reforms include providing greater clarity about the rights and obligations that parties have and encouraging a timely and efficient resolution of disputes that arise in the homebuilding process.

These reforms have been welcomed by leading voices in the construction industry.

Urban Taskforce Chief Executive Officer Chris Johnson stated that they will promote a fairer system in the real estate construction industry.

"Too much time and money is currently spent on litigation between owners corporations and developers in the resolution of defects that can be better spent on ensuring houses and apartments are well built and managed," said Mr Johnson.

Housing Industry Association (HIA) NSW Executive Director David Bare also welcomed the reforms, stating that they will help to encourage "more practical and workable outcomes".

Once these reforms are passed and implemented, it could open doors up for a number of people in Australia who wish to build their own homes or add value to their existing ones through renovations.

As the population in the state of NSW is expected to grow dramatically over the coming years, there will be a high level of demand for housing in many areas.

These changes may therefore offer a degree of encouragement for those thinking of buying land for sale in the state to build on.

"Protecting homeowners as they renovate, build or buy their home helps people in achieving the great Australian dream, while also setting clear ground rules for builders," Mr Roberts said.

Mr Roberts said the Position Paper gives a preview of the reforms to the public and industry bodies and will be introduced to parliament sometime this year.