Low and Mid-Rise Housing Policy to Expand Housing Options

Major Housing Reforms coming into effect 28th February!

In a major reform to address housing affordability and supply, the government has finalised the 2nd stage of the Low and Mid-Rise Housing Policy, which comes into effect on 28th February. The policy aims to bridge the gap between traditional detached homes and high-rise apartments by encouraging low and mid-rise housing developments in key urban areas.

The policy applies to residentially zoned land within 800 metres or 10-minute walk from around 171 town centres and stations, ensuring well-located housing near public transport and amenities.

Key Housing Types affected by the reforms:

Dual occupancies
Multi dwelling housing (including terraces and townhouses)
Residential flat buildings
Shop top housing

Key changes in Development Standards for Different Housing Types

The policy sets minimum development standards to ensure consistency while maximising housing potential.

DUAL OCCUPANCIES:

Permitted in all R2 zones state wide
Lot size: min 450 m²
Lot width: min 12 m
Floor space ratio: max 0.65:1
Height of building: max 9.5 m
Car parking: 1 space per dwelling
Subdivision (R1, R2, R3 only): min 225 m² per lot / 6 m width per lot

MULTI DWELLINGS HOUSING (OVER 3 DWELLINGS ON 1 LOT)

Permitted in R2 zones (already allowed in R1 and R3 zones)
Lot size: Minimum 600 m²
Lot width: Minimum 12 m
Floor space ratio: Maximum 0.7:1
Height: Maximum 9.5 m
Car parking: 1 spaces per dwelling

MULTI DWELLINGS HOUSING (TERRACES)

Lot size: min 500 m²
Lot width: min 18 m
Floor space ratio: max 0.7:1
Height of building: max 9.5 m
Car parking: 0.5 space per dwelling
Subdivision (R1, R2, R3 only): min 165 m² per lot / 6 m width per lot

RESIDENTIAL FLAT BUILDING (OVER 3 APARTMENTS & OVER 2 STOREYS)

Permitted in R2 & R3 zones (already allowed in R1 and R4 zones)

	R1 & R2 Zones	R3 & R4 (0–400 m from station/centre)	R3 & R4 zone (400–800 m from station/centre
Minimum Lot Size	500 m²	nil	nil
Minimum Frontage	12m	nil	nil
Max Floor Space Ratio	0.8:1	2.2:1	1.5:1
Max Height of Building	9.5m	22m	17.5m
Car Parking	0.5 space per dwelling	not specified	not specified
Max Storeys		6	4

SHOP TOP HOUSING (OVER 1 APARTMENT ABOVE GROUND FLOOR SHOPS)

No permissibility change

	R1 & R2 Zones	R3 & R4 (0–400 m from station/centre)	R3 & R4 zone (400–800 m from station/centre
Minimum Lot Size	500 m²	nil	nil
Minimum Frontage	12m	nil	nil
Max Floor Space Ratio	0.8:1	2.2:1	1.5:1
Max Height of Building	9.5m	24m	17.5m
Car Parking	0.5 space per dwelling	not specified	not specified
Max Storeys		6	4

Exclusions and Planning Considerations

The policy does not apply to certain land types, including:

Bushfire-prone land
Certain flood-prone areas
Other restricted lands (refer to the Low and Mid-Rise Housing Policy exclusions for details)

Additionally, the reforms override local environmental plans (LEP) and development control plans (DCP) where necessary to ensure a consistent approach to housing approvals.

Boosting Housing Supply and Affordability

Set to take effect on 28th February, the Low and Mid-Rise Housing Policy is expected to significantly increase housing supply near key transport links and town centres. By allowing greater housing density in well-connected locations, the policy aims to improve housing affordability and choice.

The existing in-fill affordable housing bonus provisions will continue to apply to land where the Low and Mid-Rise Housing Policy applies. This means the bonus provisions will apply on top of the non-discretionary standards

With standardised development rules and streamlined approvals, the reforms provide certainty for developers while ensuring communities benefit from well-planned, sustainable growth.

For full details, visit the Low and Mid-Rise Housing Policy website.

The policy is included in Chapter 6 of the State Environmental Planning Planning Policy (Housing) 2021.

To check if your property is included in the reforms, view an interactive map here