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Home Policy

Policy change to boost housing growth

by Kody Cook
December 10, 2024
in News, Planning, Policy, Spotlight, Urban Development, VIC
Reading Time: 2 mins read
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Image: Elias Bitar/shutterstock.com  

Image: Elias Bitar/shutterstock.com  

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The Victorian Government has announced changes to the Small Lot Housing Code, making it easier to get different types of homes off the ground in Melbourne’s growth areas. 

The existing code allows homes to be built on blocks less than 300sqm without a planning permit if the set of design standards are met. 

As a result of industry feedback, updates to the code introduce a new type of home that can be built on lots less than 100sqm without a permit. This includes building townhouses on skinnier longer blocks, which was not covered as part of the original code. 

Updates to the code also bring in improved design standards for lots under 300sqm to ensure homes are better suited to modern living – including larger balconies, more windows facing the street, and more space for trees and greenery.  

By removing requirements such as the need for double garages, the updated code allows for more greenspace, smarter housing designs and homes up to four-storeys. 

The Small Lot Housing Code applies to residential and mixed-use Precinct Structure Plans in Melbourne’s Urban Growth Zone, as well as special purpose zones in Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea, and Wyndham, Geelong, Ballarat, Baw Baw, Cardinia and Knox. 

These updates aim to increase housing diversity and affordability, making it easier for smaller families and single-person households to find homes that meet their needs. 

To allow time for adjustment, the updated code will have a two-year transition period. Developers can begin using the new standards immediately, but the current code will remain in effect until the end of 2026. 

The update to the code was the result of extensive consultation with industry and builds on the previous 2019 code. 

Victorian Minister for Planning, Sonya Kilkenny, said that while the large, detached family home continues to be popular in Melbourne’s new suburbs, we’re seeing more demand for smaller homes and these changes will give Victorians more choice.”  

“Through these changes we’re also strengthening design standards, so that we’re not just building more homes but building better-quality homes.” 

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