LABOR SLAMS BAIRD GOVERNMENT’S DESTRUCTION OF STRATA PROPERTY RIGHTS
According to the Strata Scheme Development Act 2015, property owners living within a strata scheme face the risk of being forced to sell if at least 75 per cent of the other property owners wish to sell.
The loophole provides an avenue for property developers to force out reluctant home owners who stand in the way of their developments.
Despite bold promises that the draft regulations would provide protections, the Government has failed to provide any mechanisms to stop property developers from forcing out vulnerable residents.
In his speech to Parliament, Minister for Better Regulation Victor Dominello stated:
“I reassure them that the bills contain numerous safeguards that will protect the vulnerable against exploitation.”
The draft regulations are unclear on what determines market and compensation value, and provides no protection for owners who do not want to sell their home.
The regulations provide for no public interest test, no need to increase the number of residential units, nor any requirement to boost affordable or social housing.
The legislation was opposed by Labor in 2015 and the draft regulations do not resolve the fact that property rights will be weakened for owners of strata property in NSW.
Quotes attributable to Shadow Minister for Innovation and Better Regulation, Yasmin Catley MP
“The Baird Government has sided with developers and given them the ability to kick people out of their homes and communities without their consent and without any say on the sale price.
“To make matters worse, there is no overriding public interest test in this legislation– any developer can use the Baird Government’s law to forcibly buy someone’s home simply to make a buck.
“It could lead to disastrous outcomes that reduce housing stock, worsen housing affordability and even permit the tearing down of unit blocks to improve views.
“Labor is committed to overturning this unfair and poorly thought-out piece of legislation that favours property developers over the long established rights of ordinary homeowners.”