Diverse and well-located homes

Low-rise housing refers to dual occupancies, multi-dwelling housing (townhouses and terraces) and manor houses. Low-rise housing is generally no more than 2 storeys. It does not include freestanding single houses.

Mid-rise housing refers to apartment buildings (residential flat buildings) and shop-top housing that are generally between 3–6 storeys. Shop-top housing is a building that has shops or businesses on the ground floor and apartments on the floors above.

Within station and town centre precincts in the Six Cities Region, we are proposing to:

• permit residential flat buildings in the Medium Density Residential R3 zone within the precincts
• introduce non-refusal standards to accommodate 3–6 storey apartments within the precincts. They will apply to any residential flat building and shop-top housing development wherever they are permitted (except in low density residential zones). The standards will encourage more housing closer to the stations and town centres transitioning to less housing further away.
• permit multi-dwelling housing and manor houses in the Low Density Residential R2 zone within the precincts – manor houses will be defined as 2-storey residential flat buildings (which is a small apartment building) and will not be limited to 3–4 dwelling as they currently are under the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 (the Codes SEPP)
• introduce non-refusal standards to accommodate 1–2 storey multi-dwelling housing and manor house developments wherever they are permitted within the precincts.

We are also proposing to:

• permit dual occupancies in all Low Density Residential R2 zones across NSW
• introduce non-refusal standards that will apply to dual occupancies wherever they are permitted within the Greater Sydney area.

A list of different zones and their objectives is available at NSW legislation.

Non-refusal standards are a type of planning control that aim to provide consistent standards for development assessment matters like maximum building height or minimum lot size.

Non-refusal standards overrule a local environmental plan or development control plan standards that are more onerous than the non-refusal standard. If the non-refusal standard is met, the consent authority cannot refuse the development application on that basis, despite the local provisions that may apply. If the local environmental plan or development control plan standard is already more permissive than the non-refusal standard, it will continue to apply.

The proposed non-refusal standards are designed to enable the development of low- and mid-rise housing in places where they previously were not permitted.

When we use the term 'well-located area', we mean it is a good place for more housing to be provided. The best areas for more housing are walkable to good public transport, supermarkets, shops, services and amenities. Research shows that walkable distances are usually around 10 minutes walk or 800 m.

Being able to develop more low- and mid-rise housing in well-located areas will give more people the opportunity to live closer to where they work and where they need to go.

We intend that the proposals will take effect by the end of June 2024.

Councils that wish to implement local provisions to achieve equivalent or greater residential housing capacity in their council are encouraged to work with the department to progress their strategic plans as quickly as possible.

In parallel to the low- and mid-rise housing reforms, the NSW Government is rolling out a Transport Oriented Development Program. This program will accelerate state-led rezonings in 8 precincts where councils have identified areas close to transport that are suitable for growth and where master plans have been created.

The settings introduced in key areas under the Transport Oriented Development Program will prevail over the low- and mid-rise reforms wherever the frameworks intersect.

The Low-Rise Housing Diversity Code (part of the Codes SEPP) provides a fast-track planning pathway for low-rise housing types. The code allows well-designed dual-occupancies, manor houses and terraces to proceed under a complying development certificate rather than through a development application process, provided the standards are met.

Under the proposed reforms the code will not change. However, its application will expand to include areas where low rise housing will be newly allowed.

For the purposes of the proposed reforms, a 'station and town centre precinct' is:

• within the Six Cities Region, and
• 800 m walking distance of a rail, metro or light rail station; or
• 800 m walking distance of land zoned E2 Commercial Centre or SP5 Metropolitan Centre; or
• 800 m walking distance of land zoned E1 Local Centre or MU1 Mixed Use but only if the centre provides a range of frequently needed goods and services, such as full-line supermarkets. (The department is asking councils to identify which E1 and M U1 centres are appropriate to be included).

A list of different zones and their objectives is available at NSW legislation.

State and local heritage items and heritage conservation areas are broadly recognised for their unique historical significance. Heritage items and conservation areas also play an important role in preserving the local character of an area and its history. For these reasons, protecting our local heritage is an important development consideration.

The reforms propose permitting new development types and introducing non-refusal standards in a range of areas, some of which will contain heritage items and heritage conservation areas. However, the proposals will not interfere with any other applicable planning controls including heritage provisions. These will continue to be a matter for consideration within the assessment of development applications.

Proposed developments must still meet all relevant local planning controls in local environment plans and development control plans in relation to flood planning and developing on land that's bushfire prone to ensure safe and resilient outcomes.

Planning for bushfire protection was adopted under the NSW Environmental Planning and Assessment Regulation 2021 and continues to apply. Any flooding provisions set out in a relevant local environmental plan continue to apply. The policy proposals do not override or change the existing framework for managing development in these areas.

Developments that use the proposed planning reforms will undergo a development assessment by council, and all relevant natural hazards will form part of the assessment, such as the need for a bushfire assessment report.

One of the main benefits of encouraging more housing near train stations and well serviced town centres, is that more people will have the opportunity to live within walking distance to the places they need to go. This means there will be less need to drive everywhere and less sitting in congestion.

In setting new non-refusal standards for car parking, we have considered the need to strike a balance between providing sufficient parking and delivering new, well-designed housing supply.

For low- and mid-rise developments proposed through the development application pathway, councils will continue to assess traffic and parking matters. Different minimum car parking rates and standards will apply depending on the type of development to ensure that sufficient onsite car parking is provided.

Proposed changes to car parking rates will apply in target precincts that have walkable access to most needs and alternative transport options. The proposed changes to car parking rates under various development scenarios are detailed in the Explanation of Intended Effect: Changes to create low- and mid-rise housing document.

For low-rise housing, the landscaping requirements outlined in development control plans and the Low-Rise Housing Diversity Code Guide for development applications (PDF, 16.4 MB) will continue to be applicable. The design guide will be updated to include new requirements for tree canopy, deep soil and tree planning.

New landscaping provisions are proposed for mid-rise housing to promote excellent amenity and liveability for residents and environmental benefits.

The minimum soil depth and planting requirements for mid-rise developments are based on private canopy targets that are set out in the department's Greener neighbourhoods guide (PDF, 11.3 MB). These provisions balance the need for housing with green coverage.

The following documents may be useful:

• Low-Rise Housing Diversity Design Guide for development applications 2020 (PDF, 16.4 MB)
• Low Rise-Housing Diversity Design Guide for complying development applications 2020 (PDF, 14.3 MB)
• Apartment Design Guide (PDF, 20.8 MB)
• Greener Neighbourhoods Guide 2021 (PDF, 11.3 MB)
• Planning for Bush Fire Protection 2019

The exhibition has now closed.

The Explanation of Intended Effect: Changes to create low- and mid-rise housing (PDF, 8 MB) was on public exhibition from 15 December 2023 to 23 February 2024. The document is still available for viewing. We thank everyone who has made a submission.

We are currently considering all feedback and approaches to ensure our reforms are applied in the right areas and support the development of more low and mid-rise housing where people want to live. We will continue to work with councils and other stakeholders to ensure we have the settings right before finalising the reforms.

We will finalise the reforms by mid-2024 through changes to planning legislation.