The collapse of Nicheliving has left a bitter taste in the mouths of WA home buyers, with hundreds of families left with half-built homes and financial ruin. The state government's proposed legislation is a step in the right direction, but it's a delicate balance between accountability and regulation. While the new laws give the building commissioner more power to monitor builders, there are concerns about the potential impact on the housing supply.
The proposed legislation aims to protect home buyers by allowing them to access home indemnity insurance and seek a new builder if their current one collapses. This is a crucial step in ensuring that consumers can trust that what they're buying is what they're going to get. However, the question remains whether this goes far enough to prevent another Nicheliving-style saga.
The WA Consumer Protection Commissioner, Trish Blake, believes that the changes are critical for an efficient market and that any honest home builder should not be concerned. She argues that the building commission will have more power to monitor closely and step in before situations like Nicheliving's occur, ensuring that consumers are not left powerless. However, federal laws that prevent home builders from trading while insolvent often come into effect too late, punishing the directors rather than the consumers.
Matt Moran, chief executive of Master Builders WA, supports the reforms but cautions that too much regulation could hurt housing supply. He believes that the measures will help rule out dodgy builders and cowboys, but emphasizes the need for consultation with the industry to ensure that builders can continue to get on with the job of building. The current situation in WA, where building inspectors are not legally required to be accredited, is also a concern. Moran believes that this could be a big win for both builders and consumers.
In conclusion, the proposed legislation is a necessary step towards protecting WA home buyers from the fallout of builder collapses. However, it is a delicate balance that requires careful consideration and consultation with the industry to ensure that the housing supply is not hindered. The future of the housing market in WA hangs in the balance, and it is up to the government to get it right.
