New reforms to fast track low-rise and mid-rise housing

The NSW Government is delivering on its commitment to address the current housing crisis with bold reforms to create tens of thousands of new low-rise and mid-rise homes in well-located areas. The Government has announced changes that will “fast-track” a greater diversity of homes like residential flat buildings of 3-6 storeys, terraces, townhouses, duplexes and 1-2 storey apartment blocks in suburbs where they are not currently allowed.

At this early stage, the proposed reforms seek to:

• Allow dual occupancies (e.g. duplexes) in all R2 Low Density Residential zones across all of NSW.

• Allow terraces, townhouses and 2 storey apartment buildings near transport hubs and town centres in R2 Low Density Residential zones across the Greater Sydney, Hunter, Central Coast and Illawarra-Shoalhaven regions (Six Cities region).

• Allow mid-rise apartment buildings located near transport hubs and town centres in R3 Medium Density zones and appropriate employment zones (e.g. E1 Local Centre and E2 Commercial Centre). This will mean more housing just a short 10-minute walk (800m) from transport hubs, shops and amenities.

The Government will introduce a State Environmental Planning Policy (SEPP) to enact these changes while simultaneously encouraging councils to add these types of dwellings to their own planning rules. If a local government’s planning rules, such as LEPs, match or go further than this new SEPP, then this new SEPP will not apply.

The proposed plans will go on public exhibition for public feedback until Friday 23 February 2024. The NSW Department of Planning will publish a response to submissions once the exhibition has closed. The reforms are expected to take effect by the end of June 2024.

As more information is provided on the NSW Government’s proposal and the new SEPP, we will publish more detail. In the meantime, if you want more information please see the NSW Department of Planning website or contact a member of our team.