The NSW Government has released an update on Stage 2 of the Low and Mid-Rise Housing Policy (Policy), which is a change to development standards that will allow dual occupancies, multi-dwelling housing, residential flat buildings, and shop-top housing within 800 metres walking distance from selected town centres, and train, metro, and light rail stations. Stage 2 of the Policy, starting on 28 February 2025, will introduce new controls to town centres and stations in Greater Sydney, Central Coast, Lower Hunter and Newcastle, and Illawarra-Shoalhaven.
The NSW Government press release for the Policy is available here, and the Explanation of Intended Effect is available here.
How will the Policy affect existing planning controls?
The Policy will introduce new non-discretionary development standards over specified areas.
Under s 4.15(2) of the Environmental Planning and Assessment Act 1979 (NSW), if a development complies with a non-discretionary development standard, a consent authority is not entitled to take that standard into further consideration in determining a development application, and it must not refuse an application on the ground that the development does not comply with those standards.
For example, the Policy will set a maximum building height for residential flat buildings of 9.5m in R1 and R2 zones for selected areas, which will override any LEP or DCP with a more stringent maximum building height. If a development complies with the non-discretionary standard, then a building cannot be refused based on building height and building height cannot be taken as a consideration against the approval of the development.
The key changes to development standards relate to floor space ratio, height of buildings, lot size, lot width, car parking and subdivision changes in residential zones. For residential flat buildings and shop-top housing, the Policy introduces different standards for development within 0-400 metres and 400-800 metres of a centre or train station.
Where will it apply?
The Policy will affect residential zoned land within 800 metres ‘walking distance’ from 171 town centres, and train, metro and light rail stations in the Six Cities Regions including Greater Sydney, Central Coast, Lower Hunter and Newcastle, and Illawarra-Shoalhaven.
The Policy excludes Transport Oriented Development (TOD) areas where the policies would overlap. The Policy excludes bushfire and flood-prone land, heritage items, and other areas, and excludes the Bathurst, Blue Mountains, Hawkesbury, and Wollondilly LGAs due to bushfire, flooding, and evacuation risks in these LGAs. NSW has released a list of other exclusions, available here.
For example, see the below map of Dulwich Hill and Marrickville stations. The area marked in yellow is the area for the Low and Mid-Rise Housing Policy (as included in the Low and Mid-Rise Housing Policy Indicative map).
The Policy commenced from Friday 28 February 2025, its key provisions can be found here. We will revert with further information if the relevant State Environmental Planning Policy has been amended.
This article first appeared in Sparke Helmore Lawyers.
