Australia’s housing crisis remains a difficult to solve issue with recent predictions that the situation may get worse before it gets better.
Back in November 2023, the NSW State Government announced proposals that they hoped would significantly boost the State’s available residences.
With shortages in the NSW rental market and property prices on the rise, many families have started to explore how they might use the family home to accommodate other family members in a way that gives them independence, be they young adults or elderly parents.
For others, creating a separate dwelling in their home could be another source of income via renting, which in turn would give a boost to the housing supply.
However, at the time of the announcement, only two Local Councils allowed terraces, duplex and semis in R2-zoned areas.
The NSW State Proposals
Currently, if you want to add a second storey or extension to your home with the intention of creating a completely separate residence – either for family members or to rent out – most Local Councils have restrictions that make this particularly difficult.
These rules prevent key aspects like a discrete entrance and a stand-alone kitchen, essential features to create truly separate residences.
One of the central planks to the November 2023 proposals was the relaxation of Local Council Development Application rules to allow for more dual occupancies (two separate homes on a single lot) in all R2 low-density residential zones across NSW.
Increasing the housing supply should in turn lead to more affordable housing, as well as optimising land use.
Tried and Tested Idea
The idea of creating stand-alone apartments from existing housing stock is far from new. Anyone who has spent time in London would be familiar with how many single homes have been converted into multiple apartments.
A key difference between Sydney and London is that the latter already has plenty of multi-level dwellings – some two or three storeys with basements – that can be converted to apartments without major building work.
In Sydney, there is a big opportunity to release the potential of the single-storey homes that dominate supply by adding another level, or extending if there is sufficient room in the surrounding garden.
What’s Next?
The NSW Government has, so far, looked to work cooperatively with Local Councils, encouraging them to change their rules so that this initiative becomes a reality.
However, should Local Councils fail to make the suggested changes, some commentators expect the NSW Government will start to enforce new State Regulations.
Other Reforms
The restrictions aren’t the only changes in the crosshairs of the State Government: the current Development Application process in NSW can be time-consuming and expensive.
The other reform is to ask Local Councils to allow more major renovations to be approved as Complying Developments. This will simplify and speed up the approval process.
Looking to Expand Your Home?
Every Local Council is now on notice to update their rules to meet the State Government’s directions.
If you are looking to expand your home to create a separate dwelling, it is important to understand your own Council’s response.
As one of Sydney’s leading builders of home additions and extensions, Addbuild is in a good position to know the various changes happening across the city’s different Local Councils.
That’s because we regularly look after the management of the Development Application process on our client’s behalf as part of our ‘concept-to-completion‘ service.
If you are looking to renovate and want the benefit of our experience, call our office on (02) 8765 1555 or send us a message using our contact form if outside of office hours.
