A property developer licensing scheme in the ACT will save homeowners money by cutting the risk of post-construction defects, an analysis released by the ACT government found.
Laws to establish the long-awaited scheme are set to pass the Legislative Assembly on Thursday, which will mean property developers will be held personally liable for issues with their buildings and must hold a licence to operate in the ACT.
Building Minister Rebecca Vassarotti said dodgy development was estimated to have cost Canberrans more than $50 million a year and the developer licensing scheme would protect people when they bought housing.
"Canberrans have made it clear that they are fed up with the quality of developments in this city. It's up to every single member of this parliament to make sure they reflect that by voting in favour of this bill," Ms Vassarotti said.
A cost-benefit analysis prepared by the Centre for International Economics said if there was an improvement in defect mitigation practices in more than 15 per cent of new multi-unit residential development in Canberra, the benefits of the scheme would outweigh the costs.
"Although some developments where the viability is marginal may become unviable, we consider it unlikely that the proposed reforms will have a material impact on the level of residential development activity in the ACT," the analysis said.
The Property Council has repeatedly warned the personal liability provisions in the scheme would force developers out of the ACT and halt a significant number of residential development projects.
Ms Vassarotti said property developers would need to hold a licence before they could lay a brick once the new scheme becomes operational.
"They will also be held personally liable if they don't fix defects in homes they have built. This will keep developers accountable and remove any incentive for them to put pressure on builders, tradies or certifiers to undertake or sign off dodgy work," she said.
A bill to introduce property developer licensing was introduced into the Legislative Assembly in November last year.
The scheme will exclude approved aged care providers who must comply with significant obligations under Commonwealth laws.
