A new State Environmental Planning Policy (SEPP) aims to facilitate the delivery of diverse housing that meets the needs of the State’s growing population and supports the development of a build-to-rent sector. RMB Planning Lawyer Tanya Emmett explains:

The proposed Housing State Environmental Planning Policy (Housing SEPP) will consolidate three current SEPPs and update some planning provisions in response to community, council and industry concerns about the existing framework relating to seniors, social and affordable housing developments.

The new SEPP also aims to streamline the planning framework and to ensure that it is well placed to encourage investment and to respond to the increasing need for social and affordable housing in NSW.

Three new diverse housing types – build-to-rent housing, student housing and co-living – are being introduced to provide more housing options. 

The proposed changes were set out in an Explanation of Intended Effect (EIE), which was placed on exhibition between July and September last year. Key stakeholders made 270 submissions about the proposals.

The proposed changes are set to be rolled out in phases with some changes to social and affordable housing provisions commencing late last year and the introduction of build-to-rent housing into the NSW planning framework commencing early this year. 

The balance of the reform package will be rolled out after further consultation between the State government and key stakeholder groups.

Build-to-rent

The SEPP Amendment (Build-to-Rent Housing) 2021 was implemented in February. Many existing policies were amended by this SEPP to enable the introduction of this new type of housing into the current planning system. 

The SEPP was implemented earlier than anticipated as part of the State government’s response to the pandemic and to accelerate projects that support employment and economic development.

Build-to-rent is a new housing typology that has been in place overseas for a number of years.

It is purpose built residential housing, which is kept in single ownership and provides on-site professional management. The product is said to offer renters security (longer term leases) and flexibility, allowing tenants the ability to move within the same owner’s portfolio as their needs change or families grow. Build-to-rent developments focus on communal and shared amenities, with offerings varying depending on location and need.

Build-to-rent developments are permissible in zones where residential flat buildings are currently allowed, as well as in commercial core and metropolitan centre zones where residential developments are not currently permitted.