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South Australian & Victorian governments have recently reacted to Australia’s Housing affordability crisis by improving and fast tracking the approval process for secondary dwellings (granny flats) which is great news…  🙂 

Most people agree that we need more housing in Australia, both affordable in terms of buying but most importantly to also relieve the pressure on rental affordability.

The Albanese Federal Labor Government’s landmark legislation to deliver the intended single biggest investment in affordable and social housing in more than a decade passed the Parliament in late 2023.

The Federal Government has set ambitious targets to tackle Australia’s housing affordability crisis. The govenments’ plan looks to create 1.2 million well-located homes over the next 5 years throughout Australia..

The $10 billion Housing Australia Future Fund will now be established, creating a secure, ongoing pipeline of funding for social and affordable rental housing.

The States are fragmented in their approach to approvals of housing though. No two states are the same and all are notoriously slow to approve dwellings.

NSW will need to build 75,000 homes each year for five years – twice as many as the state is forecast to deliver – to reach its share of the federal government’s ambitious new housing targets. 

This doesn’t allow for population growth via increased immigration numbers, of which NSW takes in the highest percentage of immigrants. 

These targets are highly unlikely to be achieved as the biggest roadblock to creating more housing in a timely manner is in the approval process. 

South Australian Government’s New Plan to improve their Housing Affordability Crisis

New SA planning rules ensuring ‘granny flats’ can be rented to anyone and refining criteria to fast-track approvals for new homes in master-planned areas are now in effect,

Amended regulations now ensure all existing ancillary accommodation (granny flats) can be leased or rented out, potentially bringing hundreds of new homes to the rental market.

These changes mean it is no longer an offence to enter into an agreement to rent a granny flat with anyone, even if development approval limits use or restricts occupation to family of the main home’s residents.

This important change has been made given the housing accessibility and affordability issues within the State.

Important Changes to SA Granny Flat Rules 

Following feedback received from stakeholders, the following important changes have also been made to the accepted development criteria for dwellings in Master Planned Zones:

• Exclude the accepted development pathway from applying where a building envelope plan exists over the site.
• Exclude the accepted development pathway from applying to State Heritage Areas, State Heritage Places and Local Heritage Places.
• Only allow the accepted development pathway to apply to existing allotments.
• Amend the existing primary street setback requirements from 3 metres to 5 metres to be in line with the Deemed-to-Satisfy (DTS) requirements in the Master Planned Township Zone.
• Include the following new criteria:
• Finished floor level must be 300 millimetres above highest point of kerb of primary street in the Hazards (Flooding) Overlay, Hazards (Flooding – Evidence Required) Overlay and the Hazards (Flooding – General) Overlay.
• Requirements for side setbacks in line with the DTS requirements of the Master Planned Neighbourhood Zone.
• Requirement for a living room window to face street frontage or open space.
• Dimensions for covered and uncovered car parking spaces.
• Setback for garages and carports to allow for two car parking spaces (including limitations on garage door width).
• Restrictions on driveway width whereby the site has a frontage of 10 metres or less.
• Requirements for location of new driveway crossovers.

These changes have been made to ensure better long-term design outcomes for residents of Master Planned Zone communities and to ensure appropriate protection from any future potential flooding. Further Information from SA Government

Victorian Government’s New Plan to improve their Housing Affordability Crisis

As part of the Allan Labor Government’s bold planning reforms, it will soon be easier for Victorians to build a small second home on their property – giving families a space to grow together and boosting housing supply.

From December 2023, families will no longer require a planning permit to build a small second home on their property.

Too often, families want to keep their older and younger generations closer together – but are priced out of established areas around the state.

This change will make it easier for families to build a small second home on their own lot – near jobs, public transport, education and healthcare services, as well as existing social connections.

As part of the Labor Government’s recent Housing Statement, small second homes under 60 square metres, also known as granny flats, will no longer require a planning permit on properties 300 square metres or larger where there are no flooding or environmental overlays – lifting the burden of getting planning approval for Victorians.

There will be no restrictions on how a small second home can be used – they can be used flexibly, whether it’s keeping family members closer, providing temporary housing or being rented out for additional income.

Small second homes will still require a building permit, will need to meet ResCode (residential design code) setback and siting requirements – and cannot be subdivided or separately sold off from the main home.

These reforms will be implemented through changes to the planning and building systems, with a comprehensive information pack available for applicants and assessors.

Whether Victorians are buying their first place, upsizing or downsizing as life changes, renting or calling social housing their home – the landmark Housing Statement is about ensuring everyone has a place to call home.

The full media release by Hon.Jacinta Allen – Premier of Victoria is available now.

Conclusion 

Australia’s housing afforability crisis didn’t happen overnight and as a result will take years to overcome. Slow speed of the planning system along with the fragmented national approach has meant the crisis is now beyond a quick repair. 

A succession of governments’ have failed to address the problem, which lingers on.

Combine this with the unprecedented past few years of Covid, bushfires, flooding, high interest rates, shortage and inflated cost of building materials and trade shortages have led to the “perfect storm” that has descended upon us now. 

Sometimes it takes a crisis for governments’ to act and solve problems. Now is that time ! 

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