The Housing Industry Association NT has warned that the NT Government’s move to alter the national building codes could result in up to a $20,000 increase in the cost to build a new house in the Territory.

The government brought in the changes that will include requiring all homes to be more energy efficient, which could see the end of louvres in design, as well as changes to property access which would see ramps replacing stairs and other requirements for wheelchairs and other mobility devices.

“This decision has put yet another hurdle in front of our members and industry. The NT government is underestimating the financial impact of changes on Territory home-buyers,” HIA executive director Luis Espinoza said.

The government, however, said that modifying the national building codes is necessary to protect both occupants and the environment.

HIA said the changes will have a negative impact on the sector that is still recovering from COVID-19 lockdowns, as well as material and logistic cost increases and skilled labour shortages in recent years.

New dwellings will also be required to have a new yearly energy use budget applying to the home’s major appliances—air conditioning, lighting, hot water, pool and spa pumps, including all on-site renewable energy generation.

The government last month signed off on changes to the National Construction Code (NCC) and said that the amendments support state and territory government plans to lessen energy demand and attain emission reductions, at the same time reducing energy costs for both renters and homeowners.

Mr Espinosa said the housing sector will again be subject to price rises that will have to be passed on to consumers, noting that the pressure will only make housing less affordable, as consumers will have to foot the bill.

“HIA had sought a three-year transition period, particularly for the Territory, who have already been behind the rest of Australia, but the decision last week was a disappointing outcome and we still believe a considerable transition is needed by industry to adapt,” he said.

Deputy Chief Minister Nicole Manison defended the government’s amendments to the code saying that the design changes reflected Australia’s aging population and addressed mobility issues for the future.

“These types of reforms have happened over the history of time as we’ve modernised building, for example, making sure we’ve got buildings that are more environmentally compliant to help drive down the use of power requirements. This is part of building progress,” Ms Manison said.

She also disagreed with HIA’s forecast of house pricing soaring up to $20,000.

The amendments to the national building codes come in on May 1, 2023 and will take legal effect from October 1, 2023.