Building and construction bodies are praising the government's proposal to re-introduce a policy to waive headworks charges for new residential subdivisions which it believes will result in 1000 additional home building sites.
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The $10 million initiative was part of the government's response to the Premier's Economic and Social Recovery Advisory Council's report released on Wednesday.
In its 52 recommendations for action following the coronavirus pandemic, PESRAC said the government should a comprehensive Tasmanian Housing Strategy which included population growth and settlement planning, land availability, and approvals and permitting.
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"With current record levels of unaffordable housing across Tasmania, and concerns about the future housing market, more can be done by the state government in developing a co-ordinated, strategic approach to the overall housing situation," the report said.
"As we look at recovery over the next two to five years, having a well-developed housing policy framework that looks at the full array of housing market issues is a prerequisite to delivering more sustainable housing outcomes."
Master Builders Tasmania executive director Matthew Pollock said $10 million to offset the upfront costs of developing land for new construction would open up land supply.
"Land supply is the first crucial step in boost new housing supply and meeting the housing affordability challenge," he said.
"Housing affordability and land affordability are inextricably linked."
Mr Pollock said the separate HomeBuilder programs offered by the state and federal governments had shown there was a lot of demand for new housing in Tasmania.
"But we need the land to build on," he said.
"Land shortages can drive up costs and limit the ability of industry to keep pace with new housing demand."
Civil Contractors Federation chief executive Rachael Matheson said the costs of headworks had stopped a number of projects from going ahead.
PESRAC in its final report highlighted that houses prices and rents had not plateaued during the pandemic and recent data had demonstrated house prices had in fact increased in Hobart and regional areas at higher rates than what was seen nationally. In its interim report, it stated concern that government stimulus measures may overheat the market.
It said various data suggested this had already happened through a large blow-out in the budgeted cost of the federal government's HomeBuilder scheme and a high level of owner-occupied housing finance.
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Political reporter for Australian Community Media, based in Hobart.
Political reporter for Australian Community Media, based in Hobart.
