“DBI premiums in Victoria remain lower than comparative premiums in NSW – and they are significantly lower for new builds.”
HIA executive director for Victoria, Keith Ryan said the move was a blow for home builders and would undermine housing affordability.
“It is another hit to an already suffering home building industry in Victoria,” he said.“It means new home buyers face more fees and charges, with the typical home in Melbourne already paying more than 40 per cent of the cost of a new house and land package in taxes, fees and charges – which is locking thousands of Victorians out of home ownership.“
Ryan said it was disappointing the price hike did not provide any further increase to insurance benefits. “At a time when the Victorian government is looking to significantly boost housing supply and deliver 800,000 desperately needed new homes over the coming 10 years, the industry and consumers need all parts of government working together to lower home building costs,” he said.
“While it is acknowledged that pressure on the VMIA continues to rise due to its exposure to builder insolvencies and increased costs in recent years, such large premium increases unfairly impose the burden of responding to these claims on home builders and their clients.“
Opposition finance spokeswoman Jess Wilson said the public insurer had been mismanaged by the government and was now increasing premiums to save itself from the “financial brink”.
“Home buyers and renovators have nothing to show from these premium increases, which will only worsen Victoria’s housing affordability crisis,” she said.
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