Nightmare home to be demolished in Vic

One of Australia's largest builders has lost an appeal against rebuilding a Melbourne couple's dream home plagued with structural faults.

Earl and Shelley Softley's house suffered major structural issues due to footing and foundation movements - a problem known as slab heave.

In December 2014, the Victorian Civil and Administrative Tribunal ordered Metricon Homes to pay for the demolition and reconstruction of the Melton West house as well as removalists and rental accommodation for its owners.

Metricon Homes launched an appeal against that decision, which was dismissed by the Victorian Court of Appeal on Wednesday.