- Eligible builders have access to interest free loans of up to $300K, for up to $60K per property.
- The move is in direct response to an industry roundtable.
- The loan will support in completing homes that have been under construction for more than two years.
Today, the Cook Government announced a $10 million loan facility to support the completion of stranded Western Australian homes.
The scheme will see eligible builders have access to interest free loans that will assist in the completion of homes that have been under construction for more than two years.
Known as the Builders’ Support Facility, a maximum of $300,000 will be available to eligible builders, for up to $60,000 per property.
The initiative is a direct response to a recent roundtable held between the Cook Government, HIA WA, and the housing and construction industry, to boost housing supply and affordability in Western Australia.
“The challenges the residential building industry has faced over the last three years have been well documented, and builders all around Australia have suffered as a result of significant cost escalation, material shortages, and the consistent supply of skilled labour,” said HIA WA executive director, Michael McGowan.
“Skilled labour and cashflow have been builders’ biggest challenges over the last 12 months. Implementing the Builders’ Support Facility takes steps to support builders who may be suffering cash flow issues to complete homes for their customers.
“As the residential building industry normalises over the next 12 months, the targeted Builders’ Support Facility is a measured way to support those needing short term assistance to complete homes that have been under construction for more than two years, by providing a short-term cash injection targeted at getting homes finished without impacting the wider industry.
“When a builder enters administration, the industry and the State suffer. The builder and their family lose everything, trades and suppliers suffer losses, with consumers having to wait to re-start the home building process. The Builders’ Support Facility will hopefully minimise the number of people that have to go through this process.”
“The Cook Government is acutely aware of the current housing market across the country and its impacts on many Western Australians – including those who have experienced construction delays in the face of a tight construction market,” said Housing Minister, John Carey.
“This $10 million loan facility will support eligible residential builders to complete unfinished houses to get more Western Australians into their new homes, and further bolster WA’s housing stock.
“We’ve funded a range of new initiatives and reforms to support both the construction industry – as well as homeowners and renters – and this initiative further boosts these efforts.
“Our Government is investing a record $2.6 billion in housing and homelessness measures, and we’ve added more than 1,800 social homes, with more than 1,000 social homes currently under contract or construction, throughout Western Australia.”