Changes to national building codes expected to add $20k to cost of a new home in the NT

Changes to the national building rules are expected to significantly increase the cost of building a home in the Territory. See the rise.

The NT housing industry fears changes to the national building code will increase the cost of a new home in the Territory by up to $20,000.

The NT government last month signed off on changes to the National Construction Code (NCC), which the Housing Industry Association (HIA) says will increase the cost of a standard Territory home by up to $20,000.

However, the government says the changes are necessary amendments that will protect the environment and occupants.

The sweeping changes include amendments around property access with ramps replacing stairs and space requirements to manouver a wheelchair or other mobility device.

New residential dwellings will also be required to achieve a seven-star thermal performance rating nationally but the HIA is not yet clear whether these will be imposed in the Territory.

New homes will also have a new annual energy use budget that applies to the home’s major appliances such as airconditioning, hot water, lighting, pool and spa pumps, and any on-site renewable energy generation.

The NCC says this will support state and territory government strategies to reduce energy demand and achieve emission reductions while cutting energy costs for homeowners and renters.

However, HIA executive director Luis Espinoza believes the NT government is underestimating the financial impact of changes on Territory home-buyers.

Mr Espinoza said it was another blow to a sector that had endured sector-wide Covid-19 lockdowns, a surge in material and logistic costs, skilled labor shortages and other setbacks in recent years.

Deputy Chief Minister Nicole Manison as the NT GovernmentÕs new cabinet gets swoon in at Government House Darwin. Picture: Glenn Campbell

“This decision has put yet another hurdle in front of our members and industry,” Mr Espinoza said.

“Housing will again be subject to price rises that will have to be passed on to consumers.

“The pressure will only make housing less affordable, as consumers will have to foot the bill.

“The sheer size of the changes to the code are the biggest in 25 years and for residential builders it is a huge step in learning and understanding what these changes mean.

“HIA had sought a three-year transition period, particularly for the Territory, who have already been behind the rest of Australia, but the decision last week was a disappointing outcome and we still believe a considerable transition is needed by industry in order to adapt.”

Mr Espinoza said changes to energy ratings, building design and the introduction of a whole-of-house energy budget assessment should be subject to transitional arrangements.

He said a consequence of environmental changes could be the elimination of louvres in Territory building design.

Deputy Chief Minister Nicole Manison said the design changes reflected Australia’s ageing population.

“We have an ageing population and this is about making simple changes to the design of

how we build housing going into the future,” Ms Manison said.

“That way, as we have an elderly and ageing population, more people that need mobility devices and to get around, that we can actually keep people in their homes.

“These types of reforms have happened over the history of time as we’ve modernised building, for example, making sure we’ve got buildings that are more environmentally compliant to help drive down the use of power requirements.

“This is part of building progress.

“By all means there will be every effort made to drive those costs down but this isn’t just the Northern Territory, this is something national that needs to happen because we have a growing, ageing population. This is just sensible planning and sensible reform.”

Ms Manison disputed the HIA’s prediction of house price increases up to $20,000.

“That’s not the numbers I’ve seen.

Mr Espinoza said the HIA would host information sessions on the changes soon.

The laws commence May 1 2023 and take legal effect from October 1.

Originally published as Changes to national building codes expected to add $20k to cost of a new home in the NT