Borrowers unable to get finance amid tradie shortage

From 1 July, NSW will recognise a range of interstate building and construction qualifications and registrations, with certain tradespeople no longer needing to apply for a NSW licence, or pay additional registration or renewal fees.

Lennox Head broker Zain Pear at Zep Finance, who has been assisting his clients following two major floods in the region, said the shortage of tradespeople in the area is adding to financing delays.

“A lack of tradies means that clients are not able to get quotes so can’t get the loans approved,” Mr Peart said.

“On top of that a lot of tradies do not want to quote at the moment because they are too busy or are providing higher quotes because, even for them, everything is so volatile with price.

“They’re nervous to do fixed price pricing in case prices change too much and then they are losing money.”

With a lack of tradespeople in many flood-hit towns and lenders requiring fixed price contracts, many borrowers are left waiting and Mr Peart said there were still some “major hurdles” to get past.

“We have a massive housing shortage with already so many people homeless and short-term and holiday accom already filled up. Where are these people going to stay?” he said.

In addition to the tradespeople shortage, the region is faced with building materials delays after two of the major truss companies were flooded.

“Even if we get more tradies they still need the materials to work,” he said.

“Once again we are seeing silly rules that divide the country into states.

“We need to unite and make it easier all the time for trades and other specialties to work in any state.”

Interstate tradies needed

Treasurer Matt Kean said by cutting red tape it will make it “easier and cheaper” for interstate sparkies, chippies, plumbers, and brickies to come to NSW and help with the flood recovery effort.

“Our preference is always for local businesses to fill these jobs first. But improving the mobility of skilled workers across borders is particularly important in building the infrastructure we need to recover from the floods and build resilience to future natural disasters,” Mr Kean said.

The changes follow extensive public consultation and form part of a national move to make it easier for tradespeople to work across borders under the Automatic Mutual Recognition (AMR) scheme.

“This scheme will deliver an estimated $2.4 billion increase in economic activity over 10 years, from savings to workers and businesses, productivity gains, and quicker responses to future natural disasters,” Mr Kean said.

NSW, Victoria, South Australia, Tasmania, the Northern Territory, and the ACT are participating in the Automatic Mutual Recognition Scheme. Western Australia will join the scheme on 1 July 2022.

[Related: Brokers concerned with defaults in flood zones]