Almost 80% of selected landowners in bushfire-prone areas of rural Victoria have agreed to sell their land under the State Government’s $50 million buyback scheme.

The Government made offers to 137 property owners earlier this year based on pre-2009 and current market rates under the voluntary scheme – a key recommendation of the 2009 Victorian Bushfires Royal Commission.

In total, 108 have decided to sell, the majority living in Murrindindi in the state’s northeast.

“The [Bushfire Land Acquisition Panel] will now make recommendations on the best possible future use for the acquired land, prohibiting future residential redevelopment and ensuring any bushfire risk is managed,” Minister for Bushfire Response Peter Ryan said.

Insurance Council of Australia GM Policy Risk and Disaster Karl Sullivan says the council supports any efforts to reduce fire risk.

“As a general concept, land that is highly at risk of a fire would be inappropriate for residential purposes,” he said. “However, there are examples where land can be successfully developed for this purpose without increasing the fire risk.”

Mr Sullivan says while occupied land is commonly accepted as having a lower fire risk than unoccupied, property management is crucial.

The royal commission found inadequate land management by the State Government and landowners was a major contributor towards the 2009 bushfires disaster.

The high percentage of landowners accepting offers is in line with the number of policyholders who chose cash payments instead of rebuilding after the deadliest and most destructive fires the state has seen.

More than 2100 homes and 136,000 hectares were lost in 480 separate bushfires, incurring $1.26 billion in insurance claims. Fewer than 10% of claimants chose to rebuild their homes.

Consumer groups blamed insurers for underinsurance and non-insurance, which was in turn blamed on the high cost of insurance and the fire services levy. The levy is now being scrapped.