The ACT will be the first jurisdiction in the country to introduce a licensing scheme to regulate property developers. The government hopes the law, which has passed the legislative assembly will help prevent building defects in medium and high-density. But the industry says the enforcement measures are too strong.
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00:00Not long after Shane Hutchison bought this apartment three years ago, issues began trickling in.
00:08Water ingressed during heavy rain, shattered glass and blocked drains.
00:14It's made what was already a big purchase even more expensive.
00:18I feel particularly bad for the residents who moved in under the understanding
00:22that they would be paying so much in fees per year and that's effectively been doubled.
00:29Widespread reports of building defects in Canberra prompted the ACT Government
00:34to introduce a licensing scheme for developers. It'll take effect in 12 months.
00:39This bill is a really important milestone in terms of creating much better building quality
00:46and really putting consumer protections in place.
00:49Under the change, developers will be personally liable until 10 years after the build
00:54if they don't fix defects. That's alarming the property industry,
00:58concerned the regulatory burden will send investors elsewhere.
01:03Today's bill is too far overreaching. That makes property developers liable
01:07for everything including things out of their control.
01:10Personal liability provisions only come in place if people refuse to fix the defects
01:16that are there or if they wind up their company.
01:20The change only applies to developments of more than four dwellings.
01:24The industry claims that could stifle investment in the medium
01:28and high density housing the Government wants to encourage.
01:32Meanwhile, owners are hopeful of less conflict and more collaboration.
01:37I'd rather see us all work together rather than a carrot and stick approach.
01:42A new frontier on a developing issue.