Confirmation that another home builder has gone into administration is a further blow to housing affordability and consumer confidence in Victoria.
Melbourne-based builder Interface ConstructionsVictoria yesterday announced it was going into administration, citing increasing supply and labour costs.
Ever increasing mismanagement and cost blowouts in the Andrews Government’s Big Build are having real consequences for Victorians working hard to build their own home. Better planning is required to ensure major government infrastructure projects are not sucking labour and supplies from the residential construction sector.
This latest collapse follows fresh revelations of mismanagement and regulatory failures at the Victorian Building Authority, adding further costs and delays for residential builders and construction projects across the state.
The Andrews Government was warned of insolvencies in the residential construction sector and presented with options to better protect consumers nine months ago, but has failed to take any meaningful action.
Shadow Minister for Home Ownership and Housing Affordability, Jess Wilson, said the ongoing mismanagement by the Andrews Government of Victoria’s residential construction sector was pushing home ownership further out of reach for Victorians.
“Ongoing collapses in the residential construction sector could have been mitigated had the Andrews Government taken action when it was warned of the challenges faced by the industry nine months ago,” Ms Wilson said.
“Victorian home builders and home-buyers need an effective building regulator that is up to the job and can ensure a safe, steady supply of new homes into the market.
“The Andrews Government must take responsibility for its regulatory failures, conduct an urgent review into the VBA and the government’s domestic building insurance scheme to guarantee that any home-buyer who has paid for insurance receives what they are legally entitled to.”
