REIWA CEO Cath Hart welcomed the Cook Government’s announcement of an interest-free loan facility to help home builders complete unfinished properties. 

“Supply is the greatest issue facing the property market at the moment,” Ms Hart said. 

“An increase in building completions, particularly those that have been under construction for several years, will help ease some of the pressure in the sales and rental markets. 

“The COVID building incentives saw a huge spike in building approvals, but that hasn’t translated to completions. In the last three financial years WA has averaged 14,000 new dwellings per year. That’s just 42,000 additional homes; over the same period our population has grown by about 60,000 new households.  

“And while we need new homes for new arrivals to WA, there are people who have been waiting years for their home to be finished. 

“These delays have impacted the established homes market in several ways.  

“Firstly, there are many people waiting for their new homes to be completed and this is hampering the usual turnover in both the rental and sales markets as people remain in their current homes for longer than planned.  

“In addition, the various constraints in the building industry have seen people turn to the established homes market instead of building. This is putting more pressure on an already tight market.  

“Delays are also hindering the addition of new rental stock to the market, with investors waiting on the completion of single dwellings or larger complexes.”  

The new Builders' Support Facility will provide interest-free loans to help eligible residential builders complete new homes that have been under construction for more than two years. 

As well as helping builders complete outstanding projects, the loan scheme aims to prevent further insolvencies, which would see more homes left incomplete. 

“WA needs a strong and consistent pipeline of new dwellings to meet the needs of our growing population so any measure that gets homes out of the ground is greatly appreciated,” Ms Hart said. 

“Financial assistance that provides cash flow for builders, allows them to complete homes and remain solvent is welcome support to the building industry, and by extension, the established homes market. 

“I commend the Cook Government for the suite of initiatives it’s introducing to boost supply.”

The facility will offer interest-free loans to builders that meet the eligibility criteria, which include:

• being a solvent WA-based residential builder that has been in continuous business in Western Australia for more than four years; and
• have one or more uncompleted homes in Western Australia that commenced construction prior to January 2022.

The $10 million interest free loan scheme is the latest measure to be put in place by the Cook Government to address the State's housing needs including:

• $2.6 billion in social housing and homelessness measures, including the delivery of around 4,000 social homes;
• $80 million Infrastructure Development Fund;
• $55 million strategic investment in water and wastewater infrastructure;
• transfer duty concessions for off-the-plan apartments and apartments under construction;
• $10,000 incentive for property owners to transition existing short-term rental accommodation into long-term rental homes for Western Australians;
• $24.4 million WA Rent Relief Program to assist Western Australians experiencing rental stress or at risk of eviction; and
• Planning reforms to cut red tape and accelerate the delivery of new housing.

A registration of interest (ROI) is now available at www.smallbusiness.wa.gov.au/builders, with subscribers to be notified when the loan facility opens for applications. The ROI is open until Wednesday, 31 January 2024.

Builders are encouraged to register early for the facility, which will be available on a "first come, first served" basis to eligible applicants. Applications will be subject to financial probity and credit assessment.

Treasurer Rita Saffioti: said, "We know that the construction industry has experienced significant labour and material price hikes over the last few years.

"This has delayed some residential builders from completing homes as the cost has increased significantly.

"We have also seen many families building new homes left stranded with incomplete projects and no timeline for delivery.

"The innovative loan facility will enable builders who have been unable to complete homes under construction for two or more years due to cashflow constraints, to complete these projects.

"Providing secure housing to Western Australians, boosting housing supply, and supporting a sustainable building industry are among the top priorities of the Cook Government."

Commerce Minister Sue Ellery: said, "Building a new home is a major life event and can be stressful in the best of times.

"The Cook Government continues to engage closely with the residential construction industry to address the challenges they are being faced with.

Housing Minister John Carey: commented, "The Cook Government is acutely aware of the current housing market across the country and its impacts on many Western Australians - including those who have experienced construction delays in the face of a tight construction market.

"This $10 million loan facility will support eligible residential builders to complete unfinished houses to get more Western Australians into their new homes, and further bolster WA's housing stock.

"Housing Industry Association WA Executive Director Michael McGowan: added, "The challenges the residential building industry has faced over the last three years have been well documented, and builders all around Australia have suffered as a result of significant cost escalation, material shortages, and the consistent supply of skilled labour.

For further information formation visit the WA government website linked below: 

Builders' Support Facility to help complete stranded homes

REIWA CEO Cath Hart (Image below) welcomed the Cook Government’s announcement of an interest-free loan facility to help home builders complete unfinished properties.