Government proposals set to increase cost of new housing
New housing affordability in Queensland will continue to decrease if proposals outlined in the State Government's "Towards Sustainable Housing in Queensland and Regulatory Impact Statement" are introduced, according to Master Builders Queensland.
Master Builders Director of Housing Peter Osterhage said the Government plans to ban electric hot water systems in new houses, make the use of water pressure limiting devices mandatory and give Local Councils the power to also make the use of rainwater tanks mandatory.
"Independent research undertaken by Reed Construction Data on behalf of Master Builders, shows that the Government's proposed initiatives could increase the cost of building a new house by approximately $2,000 to $6,000 depending on what type of hot water system is installed.
"Consumers are already being hit with a decline in new home affordability and the Government's proposed initiatives are simply adding salt to the wound," Mr Osterhage said.
The Master Builders March 2005 Housing Cost Index has revealed that the cost of building a new home has increased by $3,000 since December, rising from $229,000 to $232,000 in March this year. This increase is largely due to the trade labour shortage, which is pushing wages up, and increased material costs.
Mr Osterhage said the Master Builders' affordability model is based on the cost of building a single storey, four bedroom brick home with a double garage, formal dining area and family room in Brisbane's south-east region and affordability has been steadily decreasing since August last year.
"With interest rates on the way up and changes to the Building Code of Australia set to also increase costs the Government should be focusing on initiatives that don't disadvantage consumers and provide real benefits. Government rebates may off-set some of the cost but in the long run consumers are going to be disadvantaged."
Master Builders has already hit out at the State Government stating that analysis of the statistics contained in the Government's report clearly shows that if all new homes built used solar or greenhouse efficient hot water systems, as opposed to an electric system, it would only reduce greenhouse gas emissions by 0.038% per annum.
"The miniscule savings on total greenhouse gas emissions must be weighed against the removal of the rights of consumers to select the hot water system of their choice," Mr Osterhage said.
The survey was conducted by Reed Construction Data in conjunction with Master Builders Queensland.
For a copy of the Master Builders Affordability index or for more information please call Paula Crookes, Manager – Corporate Communications P (07) 3404 6422 | M 0409 639 381. Master Builders 417 Wickham Terrace Brisbane 4000, http://www.masterbuilders.asn.au