HIA backs bold housing reforms

The Housing Industry Association (HIA) has welcomed the Productivity Commission's interim report into housing supply regulation, saying it validates long-standing industry concerns that planning systems, approval delays and infrastructure bottlenecks are constraining Australia's housing supply.

The commission's interim findings identified planning regulation, slow approval processes and infrastructure delivery as key barries to new housing, while proposing reforms including allowing three storey townhouses on most residential land, reducing minimum lot sizes and streamlining approval pathways.

HIA chief executive industry and policy Simon Croft said the report challenged outdated planning assumptions that have restricted housing supply for decades.

"The Commission has recognised what builders, developers and home buyers have been experiencing for years. Australia cannot solve its housing affordability challenges without reforming the systems that control how, where and when new housing can be delivered," Croft said.

He said the proposed reforms had the potential to improve affordability if governments were prepared to implement them.

"Among its key recommendations are measures to allow three storey townhouses on most residential land, removing or reducing minimum lot sizes, greater housing diversity and faster approval pathways. These are all reforms that have the potential to increase housing supply and improve affordability if governments are prepared to act," he said.

Croft also welcomed the commission's focus on infrastructure delivery and developer contribution frameworks, arguing poorly coordinated infrastructure planning and complex charging arrangements were adding unnecessary costs to housing projects.

"Too often, housing projects are delayed by poorly coordinated infrastructure planning, uncertain charging arrangements and approval processes that add unnecessary cost and complexity. Ultimately, these costs are passed on to home buyers," he said.

The HIA said lengthy assessment processes, conflicting agency advice and subjective planning controls continued to increase costs and delay housing delivery.

Croft said the industry had seen enough reviews identifying the same issues and called on governments to move from consultation to implementation.

"The Productivity Commission has made it clear that incremental change will not be enough," he said.

"The industry does not need another review confirming that housing has become slower, harder and more expensive to deliver. What is needed now is the political will to implement reform."