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Monday, November 27, 2023

NSW goes nuclear on local councils to revive 'missing middle' - The Australian Financial Review

Local councils controlling residential areas filled with standalone homes will be forced to allow terraces, duplexes, walk-up flats, semis and other medium-density housing under sweeping changes to NSW planning rules designed to generate 110,000 new homes and revive Sydney’s “missing middle”.

In the Minns government’s biggest step to alleviate planning issues acting as a handbrake on the state’s housing supply, it will effectively order councils controlling low-density – or R2 zoned – residential areas close to shops and transport to approve medium-density developments such as terraces, duplexes and semis.

“We’re confronting a housing crisis, so we need to change the way we plan for more housing,” Planning Minister Paul Scully said. Oscar Colman

The plan, to be unveiled on Tuesday, is expected to trigger a fierce response from local councils. It also affects medium-density or R3-zoned areas that are within 10 minutes’ walk of jobs and public transport, where new planning rules will allow flats of up to six storeys.

The changes are expected to bring at least 112,000 new homes to Sydney and surrounding regions, and are the government’s most strident step to date to force local councils to help solve a statewide housing supply crisis.

“Fewer than half of councils allow for low and mid-rise residential buildings in areas zoned for such homes,” said Planning Minister Paul Scully, who aims to build 376,000 homes over the next five years.

“We’re confronting a housing crisis, so we need to change the way we plan for more housing. We can’t keep building out we need to create capacity for more infill, with more diverse types of homes.

“Density done well means townhouses, apartments and terraces clustered near shops, high streets and parks.”

Mr Scully pointed to Sydney suburbs including Wollstonecraft, Waverton and Erskineville – where terraces sit side-by-side with duplexes, walk-up flats and higher-density apartment buildings, all within walking distance of shops and multiple forms of public transport – as a blueprint of what government planners are aiming for.

Under the proposed changes, planning rules will be rewritten to allow dual occupancies – two separate homes on a single lot – in all R2 low-density residential zones across NSW. In R2 zones close to transport and town centres, the new rules will pave the way for terraces, townhouses and two-storey apartment blocks.

In well-located R3 medium density zones within 800 metres or a 10-minute walk from shops, jobs and transport hubs, the new rules will allow medium-rise apartment blocks of up to six storeys.

Each local council across NSW currently has its own rules for what kind of homes can be built in different areas. In many cases across Sydney, the Central Coast and Illawarra region, this specifically rules out flats, duplexes and semis from being built in R2 or low-density housing zones, and flats in R3 zones.

Sixty per cent of R3 zones across Sydney – areas the government deems to be best suited to multi-dwelling housing – currently prohibit new-build flats of any size. Just two local councils in Sydney allow terraces, duplex and semis in R2-zoned areas.

Samantha Hutchinson is the AFR's National Reporter. Most recently, she was CBD columnist for The Sydney Morning Herald and The Age. Before that, she covered Victorian and NSW politics and business for The Australian, the AFR and BRW Magazine. Connect with Samantha on Twitter. Email Samantha at samantha.hutchinson@afr.com.au

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    NSW goes nuclear on local councils to revive 'missing middle' - The Australian Financial Review
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