Builders’ loan scheme extended, gives lifeline to 70 homeowners left stranded in construction crunch

At least 70 unfinished home builds are set to get a lifeline from the State Government, which will on Monday announce an extension to its builders’ support loan scheme. The $10 million program, which opened at the start of this year amid WA’s housing construction crunch leaving families stranded, has so far paid out $5.7 million in loans for 97 homes. Of those, 30 have since been finished. Builders applied to take up interest-free loans of up to $300,000 — $60,000 per property — to support the final works delayed by more than two years to get homes to lock up stage. With demand falling short of the total $10 million budget, the Government will on Monday announce an extension of the program, bringing forward eligibility to homes where construction started before August 2022, in a bid to use up remaining funds. Builders who have already applied and received funding will be eligible to apply again, meaning they could receive up to $600,000 in support from the Government. About 50 applications that were not eligible in the first round will be automatically reassessed under the new guidelines. Premier Roger Cook said the scheme provided “much-needed relief” to home builders and homeowners. “This is about supporting builders and future homeowners to complete the build, and allows residents to move in as soon as possible,” he said. “It allows builders to continue building, keeps people in jobs and delivers more homes to Western Australians. “Boosting housing supply, supporting a sustainable building industry and providing safe and secure housing are top housing priorities for my Government.” Housing Industry Association WA executive director Michael McGowan said the building industry was critical to support our State’s growing population and economic growth “Delays, disruptions, a deficit of trades and cost escalations while operating within the terms of a fixed price contract have created turbulent operating conditions for the building industry over the last three years,” he said. “The building industry is focused on finishing homes and seeing owners moving into their new homes. This targeted loan support for builders navigating challenging cash flow conditions supports this aspiration as the State works towards delivering more housing. Applications for the second round will be open for six weeks, with builders encouraged to apply early as they will be dealt with on a ‘first come, first served’ basis to eligible applicants. The payouts come as housing looms as a significant issue at the upcoming March State election, with the Nationals announcing a policy last week of $10,000 in direct homeowner support for those left stranded by construction delays. Opposition Leader Shane Love also announced a new Construction Recovery Loan Scheme — a program modelled on federal measures for small and medium-sized businesses. “The State Government’s Builders’ Support Facility has been an abject failure, with builders saying it is too restrictive, the funding on offer is insignificant, there have been long delays to access the interest-free loans, and support has been limited to just 153 homes — a drop in the ocean,” Mr Love said on Wednesday. The promises come after construction times for homes in WA have blown out, with some builders struggling with workers and supplies.