The State Government is taking another step to address the NSW housing supply crisis by encouraging and incentivising the construction of additional homes, including more social housing.
According to the Government, initial briefings reveal it had been handed a projected housing construction shortfall of 134,000 dwellings over five years when it took Government with approval processing times out from 69 days in July 2021 to 116 days in March 2023.
It said residential house and unit rents had increased sharply over the past 12-months, signalling supply tightness.
The Government said it would improve the planning system to incentivise residential housing developers that include at least 15 per cent affordable housing in their plans.
It announced that housing developments with a capital investment value over $75 million, which allocate a minimum of 15 per cent of the total gross floor area to affordable housing, will gain access to the State Significant Development planning approval pathway.
It said the developments would also gain access to a 30 per cent floor space ratio boost, and a height bonus of 30 per cent above local environment plans.
State Premier Chris Minns said the Government was looking at ways it could help address the housing supply crisis, and that was one of them.
“These reforms will provide more homes and more affordable housing in places where people want to live,” Mr Minns said.
“It is an important step, but we know our work to improve housing supply does not stop here.”
According to the Minister for Planning and Public Spaces, the Government had a shared responsibility to deal with the housing crisis facing the State.
“We have a shared responsibility to deal with the housing crisis facing this State,” the Minister, Paul Scully said.
“We’re facing a shortfall of more than 130,000 new homes over the five years to 2029.”
“These changes provide incentives to build more affordable housing with the new pathway providing greater certainty and delivering the government more control of the decision-making process,” he said.
“This plan helps with housing affordability and with meeting our commitments under the National Housing Accord for new dwellings.”
The Ministers said the National Housing Accord had been announced by the Commonwealth Government last October as part of its Federal Budget, assisting States and Territories to expedite zoning, planning and land release for social and affordable housing.
“The NSW Government made a pre-election commitment to ensure that developments on surplus public land includes a minimum of 30 per cent affordable, social, and universal housing,” Mr Minns said.
He said the Government would also strengthen construction industry standards, introducing a new Building Commission and creating a modern Building Act.
“This work will help buyers have confidence in the quality of their new homes, as part of the Government’s commitment to well-built, well-designed suburbs,” he said.
