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What NCC & 7 Star Efficiency Changes mean for home buyers

The way new homes are to be built and their minimum level of energy efficiency is set to change.

A comprehensive review of the National Construction Code (NCC) has led to the implementation of significant changes that will impact the way your new home will be built. Amongst these changes is the adoption of a minimum, 7-star energy efficiency rating for all new homes in Victoria.

Implementation details about NCC changes in Victoria were recently announced, with the Housing Industry Association (HIA) summarising as follows:


The Victorian Government has confirmed that they will be adopting the National Construction Code (NCC) 2022 in accordance with the relevant transition periods as follows:

  • From 1 May 2023 adopt all new provisions, except for energy efficiency, condensation mitigation and liveable (accessible) housing
  • From 1 May 2024 NCC 2022 all remaining provisions including the energy efficiency, condensation mitigation and liveable (accessible) housing will be mandatory.

If you are considering building a new home, it’s important to understand what these changes mean and how you will be impacted.


Improved structural standards

One of the key aspects of the NCC changes, is the requirement for new homes to meet a higher standard of structural integrity. When adopted, Builders will need to ensure that their homes will be constructed to meet the new minimum requirements. This would enhance the overall quality and durability of new homes, providing buyers with peace of mind knowing that their investment is built to last.


Increase in building costs, reduced energy costs over time

Increasing the minimum energy efficiency rating from 6 stars to 7 stars will cause an initial increase to the cost of building a new home. The incorporation of energy-efficient features and materials into new home builds, will likely result in a reduction in running costs, with the expectation of reduced energy consumption and lower utility bills to maintain a comfortable environment in the family home.


Environmental benefits

By building homes that consume less energy and produce reduced carbon emissions, we can contribute to a more sustainable future and do our part for the planet. The adoption of 7-star energy efficiency standards aligns with the Victorian government’s commitment to environmental sustainability and encourages the construction industry to prioritise energy-efficient design and technologies.


A more comfortable home

A 7-star energy-rated home is designed to minimise heat transfer, keeping interiors cooler in summer and warmer in winter. The use of energy-efficient windows, insulation and more, contributes to better indoor air quality and a more comfortable living environment for home owners.


The Fairhaven team is here to help

If you’ve been doing your research around potentially building a new home, the NCC changes might have you feeling confused or concerned. The Fairhaven team is here to help answer your questions and ensure you feel confident and supported with the most up-to-date information.

Ultimately, the upcoming NCC changes, particularly the adoption of the minimum 7-star whole-home energy efficiency rating, mean when you build a new home you will contribute to a greener future, while enjoying the many advantages of an energy-efficient home. Speak to our team about your home-building journey.