Affordable home scheme went from 'blessing' to 'disaster', buyers say

It was spruiked as a scheme to allow low and middle-income earners to purchase their first home in Canberra, but almost five after signing on, some participants are yet to move in.

Instead, some buyers say they have been left stranded as they grapple with incomplete works while locked in contractual disputes with the builder.

"It's the sense of powerlessness — it's supposed to be a home, the place you feel safe and comfortable in, and this house is going to be a reminder of the years waiting.

"I do feel like ... maybe it wasn't possible within the price-capped contract."

The ACT Suburban Land Agency’s Affordable Home Purchase Scheme was set up to provide affordable properties in the fast-growing new suburbs of Whitlam and Taylor. 

Ms Lawther was initially excited when she was selected, via a ballot, to purchase land and a three-bedroom one-bathroom townhouse in Whitlam for about $440,000 in December 2021. 

"It was a little bit of good news to share after a couple of really hard years post-COVID and just a little bit of joy for everybody to get excited about," she said.

Participants were advised construction would start in 2022 and would be completed in 2023.

Instead, the project was overshadowed by lengthy delays before work finally began.

Suburban Land Agency chief executive Adam Davey said the ACT government had been providing rent assistance to 11 buyers for about two years as works dragged on.

"They are nearly finished, but they're not quite there from what I can see."

Independent assessors denied

Despite being advised their homes have reached practical completion, some buyers think the work is not yet finished.

They are refusing to sign their certificates of occupancy and have been issued with formal notices of breach of contract, with a threat of potential buyback action. 

"In the last year, seeing action happening at first was exciting," Ms Lawther said.

Last month, Ms Lawther brought an independent assessor to her practical completion inspection, resulting in them both being told to leave the property due to unauthorised access.

In a subsequent email, the builder advised independent inspectors would not be allowed on site prior to handover because the homes had already been inspected and passed by the certifier.

"I just want someone who's on my side, on my team, looking at my contract and … supporting me in responding to the builder, saying, here are all the incomplete works, here are what the defects are," Ms Lawther said.

Earlier in the process, buyers said they were shocked to discover their homes had not been built from brick, despite it being the only external material on the inclusions list.

Instead, the Suburban Land Agency endorsed the use of foam cladding, but admitted the builder had failed to properly communicate the change with the buyers. 

'Blessing' turned 'disaster'

Kathy Bai also purchased a home down the street from Ms Lawther as part of the scheme.

When she initially found out about the program, she thought it was a "blessing".

She was advised construction on her home was completed in late 2025.

But Ms Bai is yet to move in while she disputes issues with the property. 

She has described the experience as a "disaster" and said she felt let down by the scheme's operator, the Suburban Land Agency.

"It's kind of like you're talking to a wall," Ms Bai said.

"I don't feel like they're standing with us."

Call to 'redesign' scheme

Independent MLA Fiona Carrick has fielded multiple complaints and concerns from home buyers about the scheme.

She said the management of the program was causing huge levels of emotional and financial stress.

"I think the SLA needs to look after the people purchasing these affordable homes and they need to have a look at the program and redesign it," she said.

Chief Minister Andrew Barr told the ACT Legislative Assembly the Suburban Land Agency was working with the buyers and builders to avoid potential buyback action.

"The scheme itself … has generally been positive, but there are certainly lessons to be learnt and we appear to have one builder in particular who has been very difficult to deal with both for the SLA and the home purchasers," Mr Barr said in the Assembly.

"It isn't acceptable, the behaviour of the builders in this instance."

Mr Davey said the Affordable Home Purchase Scheme had worked, "broadly speaking".

"Of the 181 homes participating in that scheme, 170 people have moved into their homes," he said.

The scheme started running in May 2021 and held its final ballot in March 2022.

Mr Davey said the agency had recently sent its own inspector to the properties in Whitlam to examine quality and completion issues.

"We've provided those reports to the builder and said 'you need to finish these things', and we're in the process now of providing the latest report to the buyers, because we want them to have confidence in what's being done out there," he said.