Allan vows to make it easier to build two homes on one lot

Premier Jacinta Allan has vowed to make it easier for Victorians to build two homes on a lot under a significant planning reform to speed up subdivisions and the construction of townhouses.

Speaking on Thursday at a lunch hosted by the Melbourne Press Club, Allan said the next announcement in her week of housing policies would be to streamline the process of subdividing lots.

Victorian Premier Jacinta Allan.Credit: Jason South

She said Victorian law once allowed property owners to subdivide without a planning permit, but this was removed by the Kennett government.

The Allan government will consider three options on how to restore this right into planning laws.

“It’s not a review to tell us we should do something, it’s to tell us how to get it done,” she said.

“My government will make it easier than ever to build a second home on your block.”

Options to be considered include faster 10-day subdivisions – down from 60 days or longer – and planning permit exemptions based on meeting certain criteria.

They could also remove entirely the requirement for a planning permit.

“We know there’s options, which is why we’re going to undertake a reasonably efficient consultation process and get some advice from industry as well about how we can make this happen as quickly as possible,” Allan said.

She admitted the old system had flaws, pledging the new process would consider important issues such as flood and heritage overlays.

The government will consult industry with the intention of implementing the reforms in April 2025.

It hopes that making it easier to subdivide land will boost housing supply in established suburbs, where it wants 70 per cent of all new homes to be.

A regulatory change late in 2023 allowed home owners to build small second homes such as granny flats without planning permits. Thursday’s policy announcement is targeted at larger homes.

Allan singled out townhouses as a uniquely Australian property type that these law reforms would encourage.

“Townhouses are exactly the sort of homes we need to build,” Allan said.

“It’s a top choice for people in their 30s trying to buy a home with a few bedrooms, and a backyard, and a carport – not too far out. It’s the achievable dream for the modern Millennial.

“If you’re an owner, it’s also a good way to make a bit of money while you build someone else a home.”

Allan said she believed the community was ready for more townhouses.

“Everyone has evolved on this. But the planning rules haven’t. It’s still too hard in this state to subdivide your property and build a townhouse,” she said.

Allan also ramped up her sales pitch to Victorian Millennials, telling the Melbourne Press Club that this age group is now the largest adult generation ever.

“They grew up watching The Simpsons, but they aren’t Bart and Lisa any more. They’re Homer and Marge,” she said.

“They are the working age population. They are the median consumer. They are the main characters of our economy.

“But by letting the housing crisis fester, we’re making them drive our country forward with one hand tied behind their backs.”

Allan said it was four times harder to buy a home for a 34-year-old today than it was 40 years ago.

“Well, when you bend something for too long it breaks. And I’ve felt something snap this year,” she said.

Opposition planning spokesman James Newbury said the government’s announcement was beyond parody.

“Instead of announcing a real plan to fast-track minor subdivisions, the premier has announced that she will hit the ground reviewing into what a policy might look like,” he said.

Earlier on Thursday, Planning Minister Sonya Kilkenny confirmed the Victorian Building Authority would be replaced with a new industry watchdog known as the Building and Plumbing Commission.

“It will have new powers and tougher powers, to do what it is meant to do, and that is to protect Victorians and to give Victorians peace of mind that when they buy or build or renovate a home, what they are getting is a good quality home that is built to last,” she said.

“Victorians rightly expect this, but the system has let them down, and it has let them down badly. It is unacceptable.”

The new authority will bring together all aspects of building quality control including regulation, insurance, dispute resolution and a new goal of expanding insurance for apartment owners.

New powers will give the regulator the power to order to fix substandard work before owners move in. Apartment sales will also be able to blocked if defects are not rectified.

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