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NSW Department of Planning, Industry and Environment
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NSW needs a variety of housing options to meet the needs of different people. To drive more housing supply and meet these needs, the NSW Government has developed a new Housing State Environmental Planning Policy (Housing SEPP). This new policy aims to deliver more diverse and affordable housing types.

 

The proposed changes will also ensure that the home building sector is well-placed to assist the economic recovery of NSW following the COVID-19 pandemic.

 

An Explanation of Intended Effect (EIE) for a proposed Housing SEPP was exhibited between 29 July and 9 September 2020. The department received over 270 submissions in response to the EIE. These submissions have been considered in the development of the Housing SEPP.

 

The new policy is being delivered in phases. 

 

Phase one changes

On 18 December 2020, the first set of changes were made to facilitate the delivery of social and affordable housing by the Land and Housing Corporation (LAHC). Changes to the provisions for setting a maximum size for secondary dwellings in rural zones and the operation of Part 3 of the State Environmental Planning Policy (Affordable Rental Housing) 2009 (ARHSEPP) were made.

 

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 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 will contribute to diversity in the rental market and supports changes to the taxation settings for build-to-rent that were introduced by NSW Treasury in July 2020.

 

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

 

Phase three – Housing SEPP

The new Housing SEPP will: 

  • consolidate five existing housing-related SEPPs:
    • State Environmental Planning Policy (Affordable Rental Housing) 2009 (ARHSEPP);
    • State Environmental Planning Policy (Housing for Seniors and People with a Disability)  2004 (Seniors SEPP); 
    • State Environmental Planning Policy No 70 – Affordable Housing (Revised Schemes) (SEPP 70); 
    • State Environmental Planning Policy No 21—Caravan Parks; and 
    • State Environmental Planning Policy No 36—Manufactured Home Estates. 
  • include the recently made provisions for short term rental accommodation and build-to-rent housing;  
  • include the recently updated social housing provisions;
  • introduce provisions for co-living housing, a form of housing that provides small private rooms (which may or may not include private kitchen and bathroom facilities), offset by access to managed communal spaces;
  • incorporate amendments to boarding house and seniors housing provisions;
  • amend some local environmental plans in relation to secondary dwellings in rural zones, and the permissibility of boarding houses in R2 zones.

 

A Housing SEPP consultation draft has been prepared to provide all stakeholders the opportunity to provide feedback on new and amended planning provisions prior to the making of the Housing SEPP. The Housing SEPP consultation draft does not include the caravan park and manufactured home estate provisions, nor provisions from phases one and two (LAHC social and affordable housing provisions, and build-to-rent) as a review of these provisions will be undertaken as part of a broader review, 24 months after the Housing SEPP is made. The consultation draft also does not include the short-term rental accommodation provisions which are due to take effect on 1 November 2021. However, these provisions will be included in the Housing SEPP when it is finalised. 

 

The Housing SEPP is intended to be finalised in October 2021.

 

Have your say

You can view the Housing SEPP consultation draft and supporting documents on our Planning Portal.

 

We encourage you to have your say and submit feedback on the Housing SEPP consultation draft via the NSW Planning Portal.

 

Phase four – group homes, caravan parks, manufactured home estates

The Housing SEPP consultation draft does not include the caravan park and manufactured home estate provisions. The existing provisions will be included in the finalised Housing SEPP.

 

The review of the framework for caravan parks, camping grounds and manufactured home estates will build upon stakeholder feedback received from the exhibition of a Discussion Paper in 2015. Further information about the Discussion Paper and existing planning provisions for caravan parks and manufactured home estates can be found at Caravan Camping and Manufactured Homes.

 

Relationship to the NSW Housing Strategy: Housing 2041

The NSW Housing Strategy: Housing 2041 is the NSW Government’s plan to meet the State’s housing needs over the next 20 years. The Housing SEPP will support delivery on this strategy by driving the development of affordable and diverse housing to meet the needs of our growing community. 

 

Learn more about the first-ever NSW Housing Strategy 2041 and 2021-22 Action Plan.

 

More information

For more information you can send an email to the Housing Policy team or call 02 8289 6701.

Page last updated: 31/08/2021