‘This is just killing us’: Nicheliving succeeds in last-ditch bid to halt deregistration

The State Administrative Tribunal has stepped in to stop embattled residential builder Nicheliving from being deregistered, despite acknowledging the “distress” it would cause customers left with incomplete homes.

In a ruling handed down on Friday, tribunal president Justice Kathleen Glancy granted a temporary stay to prevent Nicheliving from losing its license while it engages in peace talks with the regulator.

Nicheliving customers Barbara Day and George Fleith.Credit: Barbara Day and George Fleith

The Building Services Board ruled not to renew Nicheliving’s registration in July over concerns about the company’s growing debt, which the tribunal was told was now almost double the value of the group’s assets.

The decision, which followed a marathon seven-hour hearing on Wednesday, means 155 customers hoping to unlock home indemnity insurance to pay another builder to complete what Nicheliving started now have to put all their hopes in its ability to finish the job.

Nicheliving had at least 225 residential home building contracts to complete when the regulator rejected its license renewal bid, which the builder vowed to complete if the move was halted.

Glancy told the tribunal the decision was underpinned by concerns the permanent cancellation of Nicheliving’s building registration would significantly impact its financial position.

But she told the tribunal she was sceptical about the company’s capacity to complete the remaining homes in the timeframe given, acknowledging the stay was unlikely to help those waiting the longest for their home builds to be completed.

“We note the distress, inconvenience and financial hardship [experienced by customers] as a result of their construction homes having taken so long, and we do not overlook that distress and financial consequence a stay will have on those customers,” Glancy said.

“We are certainly far from convinced the timeframe to complete homes will be achievable if it is able to continue its operations.

“We are not satisfied the completion of 215 homes will resolve the housing crisis or that a refusal will exacerbate the crisis.

“Nevertheless, there may be further confusion and uncertainty if a stay wasn’t granted.”

Client Barbara Day and her partner George Fleith were among those awaiting the decision, having sunk more than $1.5 million of their life savings into a Nicheliving home in 2022.

“We sold up everything when we retired in 2023 to move from Port Macquarie and build our dream home in Perth,” Day said.

“It was the collective effort of our lives, what you see [pictured] is $1.6 million worth of investment, and we don’t know where that moneys gone.

“It definitely hasn’t gone into finishing our home.”

The couple, aged in their late 60s, are paying $45,000 a year for a furnished rental having expected their Como home to be finished at March 2024.

George has since returned to full-time work to keep some cash flow.

“We feel like fools, Nicheliving have made us feel like idiots,” Day said.

“I’m a senior-trained ICU nurse and my husband owned a company, and we feel like we’ve just been shoved off and not worried about ... too bad.

“I went to the dentist today and the dentist said ‘Are you alright?’ and I just burst into tears. We’re not alright, this is just killing us.”

In a statement released on Friday, Opposition leader Shane Love branded the decision a “serious blow” to customers and accused the tribunal of dragging them “through the wringer”.

Love called on Premier Roger Cook to outline a plan to help the families impacted by the decision and bring an end to the “sorry saga”.

“The SATs decision to allow Nicheliving to continue operating will be a serious blow to hundreds of customers who will now again be stuck in limbo, unable to access Home Indemnity Insurance, and unable to see long-awaited progress on their homes,” he said.

The stay will remain in place until a full review of the regulator’s decision is complete and will prevent Nicheliving from commencing any new home builds.

The tribunal is expected reconvene on November 20 for a five-day review.