NSW Planning is preparing to release Stage 2 of the Low and Mid-Rise Housing policy. Stage 2 is expected to include the long anticipated non-refusal minimum site standards to support more flexible housing solutions. Here, we break down the essentials of the policy changes and what they mean for those looking to develop dual occupancies and multi-dwelling housing.
What is the Low and Mid-Rise Housing Policy?
The Low-and-Mid-Rise Housing Policy introduces new guidelines to promote a variety of higher-density housing types in key urban areas. This initiative supports building dual occupancies, multi-dwelling units, and townhouses, emphasising the need to preserve local character while expanding housing availability. By revising controls and widening options for dual occupancy and multi-dwelling projects, the NSW government aims to encourage flexible housing solutions that will help accommodate the state’s increasing population.
Stage 2 of the policy will broaden permitted uses and set clear, non-discretionary standards for dual occupancies, multi-dwelling housing, and residential flat buildings within designated local housing areas. These areas are defined as residential zones within an 800-meter walking distance from the boundaries of selected centers and entrances to specified stations.
Key Objectives of the Policy
The new policy addresses several core objectives, including:
- Increasing Housing Supply: Addressing the need for more low-and mid-rise housing to bridge the gap between detached homes and high-rise apartments.
- Preserving Neighbourhood Character: Striking a balance between community needs and preserving the character and value of established neighbourhoods.
- Creating Well-Located Homes: Providing housing options in well-connected areas, close to key amenities and transport links.
- Improving Housing Choice: Enhancing the range of housing types available to improve supply and cater to diverse needs.
New Controls for Dual Occupancies
In Stage 1, the policy introduced changes to the State Environmental Planning Policy (SEPP) (Housing) 2021, making dual occupancies and dwellings permissible with consent in all R2 Low Density Residential zones, excluding land affected by certain hazards like bushfire risks (for more details, refer to the Policy Exclusion Fact Sheet).
While Stage 1 became active on July 1, 2024, the Complying Development Certificate (CDC) pathway for dual occupancies in R2 zones within the 13 newly impacted Local Government Areas (LGAs) has been suspended. These councils have until July 1, 2025, to implement the new minimum lot size requirements for dual occupancies under the CDC pathway. Until then, dual occupancies in these areas will require a Development Application.
New controls to be implemented:
- Lot Size: Minimum 450m²
- Minimum Lot Frontage: 12m
- Maximum FSR: 0.65:1
- Parking Spaces: 1 space per dwelling
- Maximum Building Height: 9.5m
- Landscaping Provisions
- <300m²
- Tree Canopy 15% of Site Area
- Deep Soil 15% of Site Area
- At least 1 small tree per dwelling
- 300-600m²
- Tree Canopy 20% of Site Area
- Deep Soil 20% of Site Area
- 1 Small tree for every 200m² of Site Area
- >600m²
- Tree Canopy 25% of Site Area
- Deep Soil 25% of Site Area
- 1 Medium tree for every 225m² of Site Area
- <300m²
These controls have not been confirmed as yet, however have been proposed when the draft of the policy was introduced. We will find out in the coming weeks.
New Controls for Multi-Dwelling Housing (Terraces)
The revised policy sets specific standards for multi-dwelling terrace housing, allowing terraces to be approved with consent in R2 Low Density Residential zones located within the station and town center precincts across the Six Cities region.
New controls to be implemented:
- Lot Size: Minimum 500m²
- Minimum Lot Frontage: 18m
- Maximum FSR: 0.7:1
- Parking Spaces: 0.5 space per dwelling
- Maximum Building Height: 9.5m
- Landscaping Provisions
- <1,000m²
- Tree Canopy 20% of Site Area
- Deep Soil 20% of Site Area
- 1 Medium tree for every 300m² of Site Area
- 1,000 - 3,000m²
- Tree Canopy 25% of Site Area
- Deep Soil 25% of Site Area
- 1 Medium tree for every 200m² of Site Area
- >3,000m²
- Tree Canopy 30% of Site Area
- Deep Soil 30% of Site Area
- 2 Medium trees for every 350m² of Site Area
- <1,000m²
These controls have not been confirmed as yet, however have been proposed when the draft of the policy was introduced. We will find out in the coming weeks.
New Controls for Multi-Dwelling Housing
The updated policy outlines specific standards for multi-dwelling housing, which will now be allowed with consent in R2 Low Density Residential zones located within the station and town center areas across the Six Cities region.
New controls to be implemented:
- Lot Size: Minimum 600m²
- Minimum Lot Frontage: 12m
- Maximum FSR: 0.7:1
- Parking Spaces: 1 space per dwelling
- Maximum Building Height: 9.5m
These controls have not been confirmed as yet, however have been proposed when the draft of the policy was introduced. We will find out in the coming weeks.
What Do These Reforms Mean for Developers and Homeowners?
The Low- and Mid-Rise housing policy is anticipated to create substantial opportunities for homeowners, developers, and builders. By lowering barriers to dual occupancy and multi-dwelling developments, these reforms open doors for a broader range of projects in diverse settings. Homeowners may find it easier to pursue dual occupancy projects on their own property, while developers can explore more robust multi-dwelling projects with enhanced design and compliance flexibility.
However, while the new controls offer exciting opportunities, they also come with added responsibilities. Developers and homeowners must pay close attention to the new design and landscaping requirements to ensure compliance with local character guidelines. Working closely with a professional building designer like Profectus Design will be crucial to navigate these changes successfully.
How to Prepare for the Upcoming Reforms
For those considering a development project, now is an excellent time to explore the options available under the new Low- and Mid-Rise housing reforms. Whether you're interested in building a dual occupancy home on your existing property or developing a multi-dwelling complex, these changes provide greater flexibility and clarity around the development process.
To maximise the benefits of the new policy, consult with Profectus Design who understands the nuances of the updated controls. They can help you assess zoning, compliance requirements, and design strategies to ensure your project aligns with the newest standards.
By staying informed and working with professionals who are up-to-date on the latest NSW housing policies, you can take full advantage of these reforms and contribute to creating a more diverse, resilient, and sustainable housing landscape across New South Wales.
