New building and design requirements that could add thousands of dollars to the cost of new homes in Wodonga have been defended by the Victorian government.
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On Tuesday, a Border builder warned that mandatory energy rating and disability access requirements under the National Construction Code being implemented in Victoria on May 1 would add, on average, an extra $20,000 to the cost of new builds.
The NCC, parts of which have been adopted by all states and territories, has strict requirements to obtain an occupancy certificate, including a minimum seven-star energy rating and improved accessibility features.
A Victorian government spokesman said the new requirements would help the housing industry reach a target of 800,000 new homes to be built over the next decade.
But a North East MP has slammed the move, saying the timing would drive more people across the Border.
"Surely not every house has to be built to these standards," Benambra MP Bill Tilley said of the new rules, referring to the fact that Victoria was adopting all the regulations, while NSW had rejected the accessibility requirements.
"What I'm hearing is that property investors are now looking across the river.
"You add this additional $20,000 cost to building a home to the government's tax on developers turning farmland into housing, the landlord tax, reduction in the property tax threshold and you don't have a perfect storm, you have a bloody cyclone.
'Cost comes back to you'
"The cost comes all the way back to you - the new home buyer."
A Victorian government spokesman said the NCC requirement changes would "deliver more liveable housing for Victorians".
"(The changes are) making homes cheaper to heat and cool and ensuring that people with mobility issues have housing choice," the spokesman said.
"There is no better way we can support industry than by giving them a strong pipeline of work - and that's exactly what we're doing through our housing statement.
'800,000 new homes'
"We're creating the conditions needed for 800,000 new homes to be built over the next decade, giving industry the certainty to plan ahead and support thousands of jobs."
While Victoria will adopt the energy and accessibility requirements in May, in October NSW implemented the energy rating but not the accessibility rule. The national plan is being adopted by different states in a staggered fashion.
Border builder David Afonso, of Afonso Building Solutions which builds homes on both sides of the Murray River, said the implementation of the NCC requirements was "particularly confusing" with different sets of rules for NSW and Victoria.
The new edition of the code was adopted by states and territories on May 1, 2023 with transitional arrangements for the adoption of new requirements for liveable housing, energy efficiency and condensation mitigation.
'New accessibility standards'
The changes include increasing energy efficiency standards for new homes from 6 to 7-star ratings while new accessibility standards include requirements for a step-free street or parking entry to the building, accessible doorways, a toilet on the entry level, a step-free shower and reinforced bathroom walls to support the installation of grab rails.
Meanwhile, the Victorian Regional Chamber Alliance said land sales in new subdivisions had "virtually stopped" with agents reporting an increase in land resales where the current market value is significantly below the initial purchase price.
Homebuilders experiencing difficulty'
The alliance said prospective homebuilders were experiencing difficulty in securing bank finance to build with an unprecedented number of defaults on land settlements.
"This downward spiral flows onto builders, who are unable to secure stable work which in turn impedes the commencement of much-needed dwelling construction projects across regional Victoria," the alliance said.
