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Urban Taskforce | Media Releases
New code will slash delays for ˜mum and dad home builders
12 December 2008
Todays new housing code will help ˜mum and dad home builders get past local council delays, according to the Urban Taskforce.
It takes an average of 123 days to approve development applications for new free standing houses in Sydney, Mr Gadiel said.
This kind of delay is inexcusable.
Mr Gadiel said the code was aimed at helping ordinary families building their dream home, not developers.
Most NSW developers arent in the business of building detached houses, he said.
In outer suburban areas, developers are focused on servicing new residential homes lots, rather than building the house on them.
Developers are also meeting the challenge of providing modern apartments and town houses to meet the needs of the community in the existing urban areas of Sydney.
However, this is still a vital reform.
The planning system has been bogged down in trivia, which has stopped councils allocating the necessary resources to major developments such as town houses, apartments, shopping centres and industrial premises.
The recently-released Local Development Performance Monitor 2007-2008 found that councils took an average of 15 weeks (74 business days) to deal with development applications. That is the same as the previous year (73 business days).
Its disappointing that councils have invested so much energy in fighting planning reform, but have not taken any action themselves to improve their performance, Mr Gadiel said.
Sydneys slowest councils are also the areas where new homes are in the shortest supply.
Mr Gadiel said the shortage in new homes is the main cause of Sydneys rental crisis.
It takes an average of 32 weeks for Ashfield Council to deal with new developments while local renters have struggled to deal with a 17 per cent increase in rent for new two bedroom homes in the last year alone.
Hunters Hill Council gives itself an average of 30 weeks to make a decision on a new development while the short supply of three bedroom homes has forced rents up by 30 per cent in the last year.
Auburn Council takes an average of 29 weeks to make its decision while local renters have been hit by a 26 per cent increase in rents for two bedroom homes.
Marrickville and Manly councils both take an average of 27 weeks and renters have paid the price for their reluctance with an 18 per cent and 11 per cent increase respectively in local rents for two bedroom homes.
These figures are averages only - many development applications take up to 9-12 months to get resolved.
Some even take years to get sorted out.
Across Sydney weve seen an 18 per cent increase in rents for three bedroom homes and a 15 per cent increase for two bedroom apartments in the last financial year.
Mr Gadiel said that its time to take the brakes off urban development.
Without a strong supply of new housing, rents will continue to sky rocket and first home buyers will struggle even more to save a deposit for a home of their own.
Local councils should embrace the new code and focus on getting major developments properly assessed and approved.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
Media Enquires:
Aaron Gadiel,
Chief Executive Officer,
Phone: 0417 477 904 or (02) 9238 3955
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