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This blog post outlines our position on the recent NSW government housing reforms, highlighting the limitations of the current approach and our recommendations for more effective change

The NSW government recently announced reforms aimed at addressing the “missing middle” housing issue, introducing changes to facilitate the construction of medium-density housing such as duplexes, triplexes, and townhouses. While these changes are a step in the right direction, they fall short in significant areas that affect homeowners and developers.

LIMITATION OF THE CURRENT REFORMS

One of the primary challenges with the current reforms is the continued reliance on the Development Application (DA) process for approvals in R2 low-density residential zones. This means that, despite the intent to increase housing diversity and availability, property owners are still required to go through the lengthy and often complex council approval process, rather than benefiting from the streamlined Complying Development Certificate (CDC) process.

KEY ISSUES WITH THE CURRENT APROACH

DA Approval Process: The DA process remains a significant hurdle for many homeowners and developers. It involves extensive paperwork, long waiting periods, and the uncertainty of council decisions. This not only delays projects but also increases costs and reduces the feasibility of developing medium-density housing.
Minimum Lot Sizes: The current reforms do not address the issue of minimum lot sizes for medium-density housing. Many councils still enforce large minimum lot sizes that prevent the development of duplexes and other medium-density housing types. Until these minimum lot size requirements are reduced, the potential for increased housing diversity remains limited.
Maximum Dwelling Size: Through the DA application, the maximum dwelling size is significantly smaller compared to what is allowed under the CDC process. When accommodating two dwellings on one lot, the total permissible size often remains the same as for a single dwelling lot, which restricts the overall size and functionality of the units. Councils need to update their medium-density requirements to align with the Housing Code that governs the CDC process. The current discrepancies between the two processes create inefficiencies and inconsistencies, hampering the development of suitable medium-density housing.
Lack of Uniformity Across Councils: Each council has its own set of rules and regulations, creating a fragmented and inconsistent approach to housing development. This lack of uniformity makes it difficult for developers to plan and execute projects efficiently, further hindering the growth of medium-density housing.

OUR POSITION AND RECOMMENDATIONS

At Dixon Homes Sydney, we believe that for the NSW government's reforms to be truly effective, several critical changes need to be implemented:

Enforceable Minimum Lot Size Reductions: The government should enforce reductions in minimum lot sizes for medium-density housing across all councils. This would enable more property owners to develop duplexes and other medium-density housing types, increasing housing availability and affordability.
CDC Approval for Medium-Density Housing: Allowing property owners to submit applications for medium-density housing under the CDC process, rather than the DA process, would significantly streamline approvals. The CDC process is faster, more predictable, and less burdensome, making it a more attractive option for homeowners and developers.
Standardized Regulations Across Councils: The government should work towards creating standardized regulations for medium-density housing across all councils. This would eliminate the current inconsistencies and provide a clearer, more predictable framework for homeowners and developers.
Align Maximum Dwelling Sizes: Councils should update their medium-density requirements to be in line with the Housing Code governing the CDC process. This would allow for more suitable and functional dwellings on medium-density lots, making the developments more attractive and viable.

CONCLUSION

While we commend the NSW government for taking steps to address the housing crisis, more needs to be done to make these reforms truly impactful. By reducing minimum lot sizes, allowing CDC approvals for medium-density housing, aligning maximum dwelling sizes, and standardizing regulations across councils, the government can create a more efficient and effective environment for increasing housing diversity and availability.

At Dixon Homes Sydney, we remain committed to providing high-quality, affordable housing solutions and will continue to advocate for reforms that support the needs of our clients and the broader community. We are here to help you navigate the current landscape and make the most of the opportunities available.

For more information or to discuss your housing project, please contact us or visit our website https://dixonhomessydney.com.au/. Let’s work together to build a better future for housing in NSW.