Local governments in Tasmania say they support tiny homes and deny assertions that councils are making it difficult to put the affordable housing on private land.
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Instead, the Local Government Association of Tasmania (LGAT) blames "unclear" state laws which it says create confusion over when a building or planning permit is required.
Tiny homes, including tiny homes on wheels (THOWS), have proved to be a challenge for councils Australia-wide.
This week a Burnie-based tiny home builder revealed that councils are dashing the affordable home ownership dreams of Tasmanians by refusing to approve THOWS.
They said some councils will easily approve while others set-up road blocks.
'Councils do not unnecessarily make it difficult'.
LGAT president Mick Tucker said councils do not want to regulate people out of tiny homes but are forced to under state laws.
Mr Tucker acknowledged that different approaches were taken by councils, which he said was caused by insufficient state regulations for tiny homes.
He said the state government had shown a lack of support for the housing option, and had failed to create a clear and efficient regulation pathway for such developments, despite the known trend.
He denied that councils were making it more difficult for people to put tiny houses on their land.
"Tiny houses, like any dwelling, can be constructed in an unsafe or irresponsible way, such as in a bushfire zone, or with flammable materials, or without proper sewerage treatment or waste collection services," Mr Tucker said.
"Building any dwelling, including a tiny house, comes with health and safety risks and impacts, both for the wider community and the occupants," he said.
"The line between a ghetto and a safe urban community is regulation."
Mr Tucker said councils wanted to help people into housing security without putting lives and communities at risk.
"Councils also don't want to be forced to approve irresponsible and unsustainable tiny homes developments, like a dense, multiple dwelling tiny homes park without proper services (water, sewerage, waste)," he said.
"So non-regulation of tiny homes is not an option."