The Real Estate Institute of NSW (REINSW) has tentatively welcomed the NSW Government’s Housing Delivery Authority but says its success in fast-tracking new housing will depend on clear expectations – for Councils and developers.
“The REINSW welcomes the establishment of the Housing Delivery Authority by Premier Minns as it acknowledges the unacceptable delay in the delivery of much-needed housing supply in the state. The planning system is broken and requires drastic change,” REINSW CEO Tim McKibbin says.
“A more timely and cost-efficient planning pathway has been needed for some time, as the inability or unwillingness of many Councils across the state to process development applications expeditiously has been a significant contributor to the housing crisis.
“Clarity of expectations will determine whether this new planning pathway will succeed.
“As a first step, the NSW Government must clearly prescribe its reasonable performance expectations of Councils when it comes to processing DAs. Those Councils which meet these standards can retain planning powers, and those that don’t relinquish them.
“This puts the fate of a Council’s planning powers in its own hands.
“Secondly, Councils must clearly define the types of developments they’re looking for, so developers can design their projects accordingly. If a DA satisfies Council’s published criteria, it can and must be fast-tracked.
“This means Councils get to set the rules and have no excuse not to follow them.”
Mr McKibbin says the Housing Delivery Authority has the potential to address some of the costs associated with delivering new housing supply.
“The cost of planning delays prohibits the delivery of new housing and undermines the feasibility of many projects,” Mr McKibbin says.
“As Councils effectively operate as a monopoly, they’re able to charge exorbitant fees for processing development applications and inevitably, consumers bear the cost.
“Too often, the Land and Environment Court becomes the consent authority and ultimately, this creates additional costs that are paid by the end consumer.
“The housing crisis is unfolding on a broad scale. DAs should be determined based on what is good for the local community and the state, not on the former exclusively,” Mr McKibbin says.
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