New iCIRT tool will rate home builders and developers

Home builders will get a rating of one to five stars based on how shonky their work is, in a move aimed at restoring confidence in the industry.

Home builders will get a rating of one to five stars based on how shonky their work is, in a move aimed at restoring confidence in Sydney’s new builds and leaving dodgy developers “nowhere to hide”.

Minister for Better Regulation Kevin Anderson said the new ratings system would end the days of people moving into defective apartments.

“With this tool there will be no grey areas. Developers and their projects will be rated from one to five, and prospective homebuyers will be able to decide whether to buy a home based on those ratings,” Mr Anderson said.

“Buying a new apartment shouldn’t be a gamble; using this tool homebuyers can purchase confident they are dealing with a developer who will deliver them a compliant and safe home.”

The new portal will allow potential buyers to see the risk-rating and history of developers behind new apartment developments, with stars assigned based on whether issues had arisen with their past projects.

It will also include who their directors are and their credit ratings.

The ratings tool — created by multinational credit firm Equifax and known as iCIRT — pulls together key data endorsed by NSW Fair Trading, which will also allow residents to voice their concerns to the government.

Minister for Better Regulation and Innovation Kevin Anderson.

Karen Stiles is an executive at the Owners Corporation Network.

“Ratings will paint a clearer picture of a developer’s trustworthiness and the predictability of whether they are likely to construct a compliant and safe building and have the capacity to fix issues if they do arise in the future,” Mr Anderson said.

“These ratings will also be a powerful weapon in our fight to stamp out phoenixing, exposing risky developers with a history of leaving owners high and dry after they have moved in.”

“And for those with a chequered past or a history of disappearing after the sale – there will be nowhere to hide.”

Owners Corporation Network executive officer Karen Stiles said the move would stop buyers having to rely on developer’s promises that their new home is up to scratch.

“The last thing prospective owners need is to spend their life savings buying into a problematic building, but in the past consumers have had to rely on the developer’s word that the property is a safe and sound investment,” Ms Stiles said.

Mr Anderson said he aimed to have the first 50 developers voluntarily rated before the end of the year, before the portal was rolled out further.

“I encourage developers to come forward and be rated, as those with a strong track record will reap the benefits,” Mr Anderson said.