After numerous delays and lots of back-and-forth, the NSW Government has finally introduced the second stage of the Low and Mid-Rise Housing Policy. This policy will be included in Chapter 6 of the Housing SEPP and applies to 171 new locations across NSW.
Stage 1: Permitting Duplexes
The first stage of the policy started on 1 July 2024. It permitted dual occupancies and semi-detached homes in the R2 low density residential zone across all of NSW.
Stage 2: Encouraging Low and Mid-Rise Housing
The second stage of the policy starts on 28 February 2025. It introduces new planning controls to allow dual occupancies, terraces, townhouses and apartments to be built in well-located areas across Sydney, Central Coast, Illawarra and Hunter region. In particular, 171 locations have been earmarked within 800m walking distance from town centres and train/light rail stations.
Duplexes
Permitted in all R2 zones on land within a low and mid rise housing area. Initially, the government indicated the new rules would apply state-wide. After reading the low-mid-rise SEPP, this is not the case.
New non-discretionary development standards apply. These are non-refusal standards which overrule a LEP or DCP standard.
Multi-Dwelling Housing
Permitted in R2 zones.
New non-discretionary development standards apply.
Terraces
Permitted in R2 zones.
New non-discretionary development standards apply.
Apartments
Permitted in R2 and R3 zones.
New non-discretionary development standards apply in the R1 and R2 zones.
New non-discretionary development standards apply in the R3 and R4.
0 – 400m from a station/main town centre.
400m – 800m from a station/main town centre.
How is walking distance measured?
When development applications are made, they need to demonstrate that the site is within 800 metres walking distance from the nearest edge of a town centre or the entrance to one of the stations.
Walking distance will be measured from the nearest station entrance or the nearest edge of the town centre along a publicly accessible walking route. This is similar to the walking distance requirements of the Housing SEPP
What does low and mid-rise housing area mean?
Low and mid-rise housing areas are the areas where most of the Low and Mid-Rise Policy applies. They are residential zones that are within 800 metres walking distance from town centres and train and light rail stations.
Do you the in-fill bonuses apply to development under the Low and Mid-Rise Housing Policy?
The Housing SEPP outlines bonus provisions allowing additional floor space and building heights for in-fill residential development that provides dedicated affordable housing. Built form bonuses of up to 30% are available for developments that provides at least 10% affordable housing, based on a proportion of affordable dwellings being provided.
The existing in-fill affordable housing bonus provisions will continue to apply to land where the Low and Mid-Rise Housing Policy applies. This means the bonus provisions will apply on top of the non-discretionary standards. This is to encourage affordable housing to be delivered in the local low and mid-rise housing areas.
How do I know if a site is within a low and mid-rise housing area?
The new planning reforms apply to 171 locations across NSW.
You can view these areas using this interactive tool: indicative map of the low and mid-rise housing areas.
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