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.
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.
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.
The new Housing SEPP will:
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.
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.
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.
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.
Page last updated: 31/08/2021