‘Not worth the paper it’s written on’: Victorian Housing Statement deemed powerless, irrelevant

The state government’s centrepiece housing policy has been ruled irrelevant and powerless by VCAT in what the property industry has described as a “red flag” case.

The Allan government’s centrepiece housing policy has been ruled irrelevant and powerless in what the property industry has described as a “red flag” tribunal case.

The Victorian Civil and Administrative Tribunal (VCAT) has ruled that Victoria’s Housing Statement – which outlines an ambitious goal of building 80,000 homes a year – currently holds no power to defend proposals for new residential developments.

The decision related to a plan for an 11-storey mixed use development, which would have created 110 homes, along with a supermarket, retail stores and 264 parking spaces, in the North Essendon Activity Centre.

The developer had relied on the Housing Statement which states that ‘clear planning controls’ are to be introduced in activity centres to encourage the delivery of ‘an additional 60,000 homes’.

The Allan government’s housing plan has been deemed irrelevant by VCAT.

But the Tribunal found the policy – released by the Allan government in October – was not a relevant consideration in determining planning permit applications as it was yet to include planning regulations or instruments to give it actual legal and regulatory weight.

The ruling noted that while the housing statement “indicates that an accelerated rate of housing growth is now required” it is “not a background or incorporated document in the planning scheme”.

“There are as yet no changes to the planning scheme to give effect to this broad statement of intention,” it states.

It also pointed out that the statement outlined only ‘the first step’ to fast-track housing in key locations not ‘the last’ and therefore required other measures.

Property Council of Australia’s Victorian executive director Cath Evans labelled the case a “red flag” for the housing industry.

“This regrettable situation, where a sizeable, well-located residential development has been knocked back by the Tribunal is a real red flag to the industry that the Housing Statement lacks the weight necessary to clear a path to greater supply and improved affordability,” she said.

The Property Council’s Victorian executive director Cath Evans. Picture Jake Nowakowski

“It is unfortunate that the time and effort the Victorian Government has invested in the development of the Housing Statement has not been matched by providing it the regulatory clout it needs to have an impact.”

Opposition planning spokesman James Newbury said the housing statement wasn’t “worth the paper it’s written on”.

“Labor’s Housing Statement is a great big con that the courts, industry, and the Labor Government itself knows isn’t even worth the paper it’s written on,” he said.

“Labor has destroyed the dream of home ownership”.

A government spokesman said new planning controls to give the plan more weight and developers more clarity would be introduced by the end of the year.

“This important consultation work needs to happen first before we introduce new planning controls, ensuring we get the balance right between building more homes, while maintaining what makes the suburbs great places to live,” he said.