Considering Mine Subsidence Risk When Buying In Newcastle.

If you're looking to buy property in Newcastle, you've likely heard about Mine Subsidence, particularly in areas like Merewether, Mayfield, and Lambton. But what exactly is Mine Subsidence?

What Is Mine Subsidence? 

Mine subsidence occurs when the ground shifts or sinks due to past underground mining. After minerals are mined, the land above may collapse into empty spaces left by unsealed tunnels, causing the ground to tilt or stretch and potentially impacting properties or the streetscape. Old mining practices left large cavities underground that weren’t structurally sound, and over time began to collapse. These mines are typically 5-20m deep and due to the lack of technology and supervision at the time, the historical records of these mines are poor. Modern mining techniques, such as longwall mining, do not create the risk of subsidence damage.  

You might remember the old advertisement with Maurie the Mole, “If you see a hole, don’t think you’re a mole. Walk in the opposite direction and report your direction.” This advertisement became commonplace to educate kids to stay away from mine subsidence holes that formed around the Hunter. An example that comes to mind of this affecting a property was in 2014 when a sinkhole appeared in the front yard of a waterfront home in Swansea Heads. There was mining in this area dating back to the 1930s. After collapsing, the hole was 15m wide and 10m deep. Officials from the Mine Subsidence Board determined that the best way to deal with the issue was to fill it with concrete. As a result, the owners and neighbours were evacuated from the premises until officials deemed that it was safe again. Ultimately, this was unpredictable.  

What Are The Signs Of Mine Subsidence? 

When you are inspecting a property, keep an eye out for visual signs of mine subsidence. These can range from small cracks in walls and jammed doors, to bigger structural problems like major cracking or uneven floors due to settling piers. In minor cases, mine subsidence damage is certainly something most homeowners are happy to live with. Fixing a dry-wall or packing piers is a common medium-term fix for minor movements, however, the more extreme cases can cause major property damage and cost your back pocket.  

Where Does Mine Subsidence Occur? 

In NSW, the areas that subsidence is generally limited to are the Newcastle, Hunter, Lithgow, and Gunnedah regions. From the surface, you’d never know that Newcastle City is built above 100-year-old mines. At one point in the 19th century, Newcastle was the most important coal port in the Southern Hemisphere. This is partly why the harbourside suburbs of Mayfield, Tighes Hill & Maryville are dominated by what we call ‘miners' cottages’. The typical two-bedroom home of the early 1900s era now commonly has a skillion roof extension to create a third bedroom. 

The most commonly cited areas of mine subsidence in Newcastle are New Lambton & Lambton, Mayfield, and Merewether, however, there are also patches in Cardiff & other lakeside suburbs that don’t garner as much attention. 

So How Can I Do My Own Research? 

In most local council areas subject to mine subsidence issues, the section 10.7 certificate which is an essential element of a Contract of Sale will list whether the property is in a mine subsidence district. We often obtain a copy of the contract to quickly check whether a property is in a risk-prone area. 

If you can’t get your hands on the contract, the next best option is to review the property address on the NSW Planning Portal. 

What If The Property Is In A Mine Subsidence District? 

If the property you want to buy is in a Mine Subsidence District, your options to mitigate the risk are limited. The upside, however, is that the government knows this is an issue and has passed the Cole Mine Subsidence Compensation Act to protect existing homeowners from future Mine Subsidence events. 

If you do purchase a property and find there is damage from mine subsidence, you’ll be eligible to lodge a claim to the Subsidence Advisory Portal which acts as an insurer. The benefit to you is that you aren’t required to take out an additional insurance policy as the government is taking on the risk and funding claims that are approved. 

Consider future renovation plans carefully, as development applications in subsidence districts face stricter controls and higher construction costs. However, if no future changes are planned, the risk of subsidence may be less significant.

Pulling it all together 

In summary, Mine Subsidence is a crucial consideration when buying in Newcastle. Check the Section 10.7 certificate and consider future renovation plans to assess the level of risk and protection available.

 If there are no future plans, consider whether you’re willing to take on the risk of future mine subsidence events, knowing that the Subsidence Advisory Board may approve your claims.