Transforming agency approval processes can cut costs on new housing

A new report has found that fixing inefficiencies in the approval of major housing projects by state agencies could unlock $360 million in economic value and help ease pressure on house prices.

The report – commissioned by the Property Council of Australia’s Residential Development Council (RDC) – tests the state of major project approval systems around the nation.

The report sits alongside prior research commissioned by the Property Council, including the 2015 Development Assessment Report Card, and incentives framework to fix planning systems and housing markets.

Its release coincides with the launch of a new report into housing affordability by the Grattan Institute which highlights the critical importance of building more new homes and improving planning systems in order to bring down house prices.

Reforming planning approval processes is a central part of the solution on housing affordability.

State and Territory agency approval systems largely remain slow and complex – requiring developers to navigate multiple referrals and review points.

We are needlessly adding to the time, cost and red tape of new housing – and these are baked into the price of new housing.

The report outlines recommendations for continued improvement in the Northern Territory – those recommendations are;

 

• Introduce greater transparency with respect to the policy basis for referral agency matters
• Provide improved clarity as to the assessment considerations and guidelines used by service authorities to assess applications.
• Consideration should also be given to the streamlining of referral practices, such that matters that do not compromise known policy, published standards or zoning expectations are not referred.

 

The Territory’s agency referral practices presently accord with most aspects of recognized leading practice, however, industry has reported that agency / service authority criteria and guidelines relating to their assessment considerations could be made clearer.

Further concern was also expressed with the amount of time taken for agency advise to be provided, with frustration that service authority sign-off is required in areas that are zoned for development.

For a full breakdown on the Territory and the rest of Australia, you can download a copy of the report by clicking here