In response,the government will invest in a new financing pilot,which will examine how the state can directly support the housing industry to secure finance,increase the viability of housing projects. and fast-track the construction of new homes.
Under the scheme,the government will prepurchase a specified number of homes and consider whether it should act as a guarantor for some development loans when projects are assessed by financial institutions to satisfy debt requirements.
Planning Minister Paul Scully has referred to the pilot as the “government’s version of the bank of mum and dad”,which would form another plank of the NSW government’s drive to dramatically boost density.
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“We’ve introduced one of the biggest programs of planning approval and rezoning reform in NSW history to approve more homes,but we need industry to start the work of building houses,” he said.
“But getting an approval is not the same as building a house,which requires finance,and the conversion of approvals into construction projects has slowed,with developers reporting challenges accessing finance,building material price increases and labour shortages.”
As well as the finance pilot,the government has asked the newly expanded Productivity and Equality Commission to review housing supply issues.