Should Newcastle be placed under SEPP 70?

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The Housing Industry Association (HIA) has voiced concern over proposals to include Newcastle in State Environment Planning Policy 70 (SEPP 70), a New South Wales law that allows councils to charge affordable housing contributions to property developers, or require them to provide a certain percentage of affordable housing in their projects.

According to HIA Hunter executive director Craig Jennion, the proposal is ultimately a tax on new home purchasers, as they will inevitably bear the cost of any new levies or development quotas.

“Affordable housing quotas and levies simply place a cost on the overall development which must be passed onto the buyers of other homes, and feeds the affordability challenge,” Jennion said.

Jennion claimed that many developers and builders already contribute towards the supply of affordable housing types, based on their price positioning at the lower end of the market and the size and nature of the dwellings they construct.

“There will be a cumulative impact if SEPP 70 is introduced in Newcastle, and the cost implications could be severe. Whilst the region is currently performing well, much of this on the back of new home building, taxing one of the key local sectors, and one which has a real capacity to generate employment, is not the path to address this matter,” Jennion said.

 

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