The NSW government will enforce its $20,000 per home cap on local council development levies in a bid to boost construction.
The Urban Taskforce’s chief executive Aaron Gadiel said the state government’s move today will make the development of new houses with backyards much more affordable for property developers, thereby encouraging more construction activity.
“If this reform is accompanied by solid measures to cut planning red tape, we can expect strong interest by developers in re-starting major home construction in NSW,” Mr Gadiel said.
“Today’s decisive action to limit the burden of local council levies should be welcomed by anyone who is worried about housing affordability and housing choice.”
According to Mr Gadiel, NSW housing construction fell to a new record low last year, for the fourth consecutive year.
“NSW has 57,000 less homes than the community requires,” he said.