WA opposition demands action on Nicheliving as customers lay bare ‘horror’ home builds
When Kathy Ellis inked a contract with Nicheliving for her new home in December 2020, she believed she had marked the beginning of a new chapter in her life and the ultimate gift to her two children.
But now, more than 3½ years later, Ellis claims she and her teenage children have to live in a camper trailer with no heating, left in a state of financial ruin, her home still unfinished.
WA Opposition Leader Shane Love speaks outside parliament.Credit: Jesinta Burton
Ellis is one of hundreds of Nicheliving customers believed to be caught up in what Opposition Leader Shane Love has branded an “unfolding disaster” in Western Australia’s residential construction industry.
On Thursday, the Nationals MP used the cover of parliamentary privilege to implore the state government and the industry regulator to conduct an urgent probe into Nicheliving and allegations it had left between 300 and 500 homes unfinished and contractors unpaid.
The Nationals MP said many of the customers left in limbo that had spoken with his office had done so on the condition of anonymity for fear of facing legal action, laying bare the contents of several letters his office had received.
He claimed some customers’ build times had ballooned beyond three years, with many now paying rent and the mortgage on their unfinished home.
Love accused the government of turning a blind eye to those experiencing hardship, insisting the delays were not just about unfinished homes, but that they represented financial ruin, emotional distress and broken promises.
A short time later, he told the waiting press pack it was crucial Commerce Minister Sue Ellery join forces with the Building Commission to develop an urgent plan to address the situation, scolding the state government’s response to his grievance, indicating it was woefully inadequate.
“This isn’t one or two people, there are hundreds,” he said.
“What we had today was a response to that problem which failed to address any of the concerns of the customers or a plan to address this issue with industry.
“This is really an unfolding disaster, and we need urgent action to move forward.”
He also insisted the state government’s $10 million interest-free loan facility, announced in January, was insufficient given the immense scale of the issue and the number of West Australians affected.
Treasurer Rita Saffioti said the facility was not set up for big builders like Nicheliving.
“The Nicheliving example is a bigger example than what this facility was developed to do,” she said.
“This facility was very much targeted at small builders and was capped at five homes.
“We very much sympathise with the home builders, people who put their trust into a company to deliver their home, and we’re very much seeing how we can try and get these homes completed.”
Love was flanked by half a dozen distressed Nicheliving customers — including Ellis — all of whom claimed they had been waiting years for the completion of their home.
Ellis said work proceeded as planned for the first 12 months, but then the build stalled and the communication ceased.
The home remains in lockup as it did almost two years ago, but Ellis told the media there was no kitchen top, no flooring and water was now seeping into the home — leaving mould in every room.
She said she had taken on a second job to make ends meet and pay the bills on a home she cannot yet live in.
Kathy Ellis has been forced to live in a camper trailer after her home was delayed.Credit: Jesinta Burton
She claimed she sent the company 48 emails in the past six months alone, but her calls for assistance had fallen on deaf ears.
She also penned a desperate letter to the office of Commerce Minister Sue Ellery pleading for help in 2023, which was met with a direction to contact 24-hour crisis support service Lifeline.
“And I called Lifeline because I needed help. It didn’t help,” she said.
The parliamentary secretary told parliament Ellery had requested an urgent meeting with Nicheliving’s directors, which was due to take place next week.
In a statement released late on Thursday, Nicheliving said it would continue working through the difficult challenges in the market and was committed to delivering all contracted builds, including those at loss-making prices.
And the company called on the government to do more to support struggling builders.
“We have never passed any price increases through to our clients. They will have their homes delivered, and at the contracted prices on the agreed terms and conditions, contract prices that no longer exist in the market,” the statement read.
“Nicheliving is committed to assisting all clients and to continue investing and dedicating efforts to deliver on that commitment.
“We have over 100 homes due for completion shortly. Unlike some of our competitors, Nicheliving has not received any government-backed builder support.”
The construction industry is still reeling from a string of high-profile company collapses following what has been dubbed “the profitless boom”, a period of building activity buoyed by COVID stimulus.
The state and federal government stimulus — which attracted more than five times more applicants than anticipated — drove labour and materials cost hikes at a time when supply chains were constrained, pricing builders out of jobs.
It also left behind hundreds of stalled home builds, costing families tens of thousands of dollars in mortgage and rent costs and leaving them in limbo.
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