The Importance of Planning Reform for Builders

Planning Reforms: Opportunity and Challenge

For many home builders and their clients, the planning system is a quagmire best avoided. The system is complex, and even relatively straightforward planning approvals can take months or sometimes years. That doesn’t include the process of rezoning land to allow for residential developments. On top of that, having infrastructure approved and then constructed adds further complexities.

It must be acknowledged that a planning system is important. The potential for chaos and costs being unfairly imposed on third parties if development is unchecked is obvious. Development must consider infrastructure requirements, environmental protection, and community well-being as well as encouraging business activity and increasing housing supply.

However, at times it can seem the planning system is about giving everyone a chance to say “NO” without taking responsibility for that rejection. There are a large number of stakeholders who can get involved in planning decisions and often proponents of development get swamped by the demands of these stakeholders.

In recent years, the Victorian government has moved to reform the planning system. This will be a slow and gradual process and will take time to result in more homes being built. Eventually, it is expected that the legislation for the planning system will be completely overhauled. In the meantime, the planning system will be incrementally improved by amendments such as allowances for small secondary homes, the Townhouse Code, and two homes on one lot reforms.

Proposed reforms, including recent planning scheme amendments currently being reviewed in Parliament, expanding deemed to comply assessments if proposals meet specific requirements and also limiting third-party appeal rights. These reforms have the benefit of providing more certainty for developers, builders and clients without unnecessarily restricting consideration of all relevant interests before a planning approval is granted.

One warning for builders, however, is if the government manages to reform the planning system and get more developments approved, it is expected that some stakeholders will look for other ways to prevent or at least delay these developments. Challenging the building permit by questioning protection works arrangements and the associated insurance requirements is the obvious next battleground.

HIA members can contact us on 1300 650 620 for more guidance on these matters.