The Housing Industry Association says Victorian regulatory reform is welcome but action is still needed on rising builders’ warranty premiums.

A new Building & Plumbing Commission will be created, incorporating the Victorian Building Authority, and it will have powers to enable the expansion of the domestic building insurance (DBI) scheme as it moves towards a “first resort” model.

HIA executive director for Victoria Keith Ryan says the DBI scheme is “long overdue for review and reform”.

“At the same time, HIA remains concerned with some aspects of the changes announced,” he added. “This includes the move towards a ‘first resort’ DBI system.

“This approach needs further detailed consideration to ensure this does not just add more cost and complexity to the home building process. It also needs to be supported by a fair and fast dispute resolution system.

“The suitability of the introduction of a developer bond scheme for homes not covered by DBI is also questionable, as a similar scheme introduced in NSW has struggled in its operation and effectiveness.”

He says the cost of premiums, “which [has] increased substantially in the past two years and is undermining housing affordability”, needs attention.

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