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NSW Department of Planning, Industry and Environment
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Proposed Housing SEPP

A proposed 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 support the development of a build-to-rent sector.


The proposed Housing State Environmental Planning Policy (Housing SEPP) would consolidate three current SEPPs and update some planning provisions in response to community and council concerns about boarding house and seniors housing development.


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


The proposed changes, as set out in the Explanation of Intended Effect (EIE), will ensure that the residential development sector is well-placed to assist the economic recovery of NSW following the COVID-19 pandemic.


The EIE describing the changes was on exhibition from 29 July 2020 until 9 September 2020. The department received over 270 submissions during this period.


Phase one changes

On 18 December 2020, the first set of changes to housing policies were made to facilitate the delivery of social and affordable housing by the Land and Housing Corporation. Additionally, changes to the size of secondary dwellings in rural zones and the operation of Part 3 of the State Environmental Planning Policy (Affordable Rental Housing) 2009 (ARHSEPP) have been made.


Amendments were made to provisions of:


For more detailed information about these provisions, you can read our Frequently Asked Questions (PDF, 166 KB) and visit our New provisions webpage.


Phase two changes

New provisions for build-to-rent housing were exhibited for stakeholder feedback in 2020 and were introduced in February 2021.


Build-to-rent housing is large-scale, purpose-built rental housing that is held in single ownership and professionally managed. It offers the potential to provide more rental housing choice and supports changes to the taxation settings for this form of development that were introduced in July 2020.


The remaining proposed changes as set out in the exhibited EIE will be introduced after March 2021. The remaining changes include the introduction of new provisions for student housing and co-living, updates to provisions for boarding houses, seniors housing and group homes, as well as the consolidation of the Government’s three housing-related policies.


You can view all exhibited documents, including the EIE on our Planning Portal.


For more detailed information about the BTR provisions, you can read our Frequently Asked Questions (PDF, 120 KB) and visit our Build-to-rent housing webpage.


Housing strategy discussion paper

The proposed Housing SEPP is an example of government-led action to address housing diversity and affordability, in line with the proposed NSW Housing Strategy.


The discussion paper for the proposed NSW Housing Strategy sets out a whole-of-government approach to meeting NSW’s housing needs over the next 20 years and was recently exhibited for public consultation.


View the consultation material for the proposed Housing Strategy.


Together, the proposed Housing Strategy and the proposed Housing SEPP reflect the NSW Government’s commitment to delivering housing that meets the needs of our current and future communities.


More information

For more information you can send an email to the Housing Policy team.

Page last updated: 15/02/2021