The NSW Labor Government has announced major changes that will allow local councils to fast-track approvals for more three-to-six storey buildings like terraces, townhouses, and apartment blocks.

The reforms will override individual council’s own planning policies, which the State Government says don’t allow for the types of homes needed to address the housing shortage crisis.

The changes will allow for dual occupancies in all R2 low density residential zones in NSW, terraces, townhouses and two-storey apartment blocks near transport hubs and town centres in R2 zones, and mid-rise apartment blocks in R3 medium density zones if they’re near a transport hub or town centre.

The NSW Government needs to amend the State Environmental Planning Policy before the changes are enacted and will also encourage individual councils to approve more of these types of homes. The plans will go on public exhibition for comments next week.

NSW Minister for Planning and Public Spaces Paul Scully said the reforms would create the capacity to build up to 112,000 new homes, nearly 30 per cent of the number of new homes targeted by 2029 under the Housing Accord.

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

It’s auspicious timing for Kiama Council, who this week voted to make changes to the Kiama Centre Planning Proposal that will allow for buildings up to six storeys high to be developed in some parts of the town centre. 

A Kiama Council spokesperson said KMC will focus on engaging with the community on the broader concept of growth and development of the LEP. Part of that will include a community engagement process early next year to create a Housing and Growth Strategy and to review the current LEP, and will investigate options for improvements to housing diversity and supply.

“Now more than ever local developers who have land holdings will be considering their own futures and potential yields, as the demand for housing continues. Council is keen to strategically plan for growth and ensure that is supported by essential infrastructure such as water, sewerage, roads, schools, open spaces etc. The support of the State Government to ensure this infrastructure provision is imperative if density is to be increased at appropriate locations.”

The spokesperson pointed out that under its Local Environment Plan (LEP), both multi-dwelling housing and dual occupancies are already permissible with consent in R2 zones.

This article was updated at 12:34PM 29 November 2023 to include commentary from Kiama Council.