The City of Sydney and the NSW Government are both looking at ways to boost the supply of build-to-rent projects as the state deals with a worsening housing crisis.
The City of Sydney Council recently endorsed changes to planning and development rules to encourage more build-to-rent housing and family-friendly apartments, while improving sustainability and design excellence.
Under the changes, developers would be given between 20 and 75 per cent more floor space for build-to-rent development for both conversions and new builds, depending on the site location.
This would apply to applications made within a five-year time frame from when the changes are formally approved.
“We’ve seen build-to-rent work well overseas to help address the housing crisis, with these types of developments providing stable and secure accommodation for renters,” the Lord Mayor Clover Moore said.
“In addition to increasing rental stock in Central Sydney, this type of accommodation has high occupation rates. That is great for inner-city vibrancy and avoids situations where international investors leave newly built flats empty for capital gain.
“Build-to-rent housing does not sit idle with lights out, as some high-end investor apartments do, and these developments will help revitalise and boost the local economy.”
Developers will also be able to access 20 per cent more floor space for co-living accommodation to encourage co-living developments to stimulate an increase in student and low-income worker accommodation.
Meanwhile, the NSW Government announced a State Environmental Planning Policy (SEPP) introducing housing reforms to make it faster and easier to build more affordable housing.
The reforms introduce a new bonus Floor Space Ratio (FSR) of up to 30 per cent and a height bonus of up to 30 per cent where a proposal includes a minimum of 15 per cent of the gross floor area (GFA) as affordable housing.
These bonuses are available for build-to-rent developments, by allowing them to apply in commercial zones, even if residential accommodation is prohibited under the relevant Local Environmental Plan.
Minister for Planning and Public Spaces Paul Scully said the reforms build on the government’s recent housing announcements.
“While we want to maximise the amount of social and affordable housing in new developments, developers also need incentives to include these homes in future projects.
“The provision of affordable housing is a shared responsibility which is why the changes we have made from the consultation have tried to achieve balance, to get the best outcome for all rather than any single group.
“The large amount of consultation has been essential to make sure more affordable housing can be created. I want to thank industry, councils and other stakeholders for their support and input.”
Property Council NSW Executive Director Katie Stevenson welcomed the changes.
“The Property Council has been clear that we need to deepen the pool of affordable rental housing providers in the market to meet our ambitious Housing Accord targets,” she said.
“These policy changes now allow the build-to-rent sector to put its shoulder to the wheel on contributing to the stock of affordable housing.”