The State Environmental Planning Policy (Housing) 2021 — commonly called the Housing SEPP — came into effect on 23 November 2021 and consolidated 11 separate housing SEPPs into a single instrument. Here's what matters for developers.
Key inclusions
The Housing SEPP brought together:
- Affordable Rental Housing SEPP (now Chapter 3)
- Housing Code (Low Rise Housing Diversity Code — now Chapter 4)
- Infrastructure SEPP housing provisions
- Boarding Houses SEPP
- Group Homes SEPP
The Low Rise Housing Diversity Code (Chapter 4)
This is the chapter most developers care about. It allows code-assessed (CDC) approval — bypassing the DA process — for:
- Dual occupancy (attached and detached) in R1, R2, R3, RU5 zones
- Manor houses (up to 4 dwellings, 2 storeys) in R1, R3 zones
- Multi dwelling housing (terraces) in R1, R3 zones
The key advantage: a private certifier can approve a complying duplex in 2–3 weeks vs a 12-month DA. This is the most important fast-track pathway available to small developers.
Secondary dwellings (granny flats) — Chapter 3
Under the Housing SEPP, secondary dwellings (granny flats) are permitted on any lot that:
- Is at least 450 m²
- Is in a residential zone (R1–R4, RU5)
- Has an existing or proposed principal dwelling
Maximum size is 60 m² GFA. No DA required. Certifier approval within 10 days. This is the highest-yielding low-risk strategy in the NSW market right now.
What didn't change
Height limits, FSR, minimum lot sizes, and zone eligibility from the LEP still apply. The SEPP doesn't override LEP controls — it sits alongside them. If your LEP says 8.5 m height, the SEPP won't let you go taller.
Council opt-outs
Some councils successfully applied for exclusions from the Low Rise Housing Diversity Code, particularly for dual occupancy and manor houses. This means the code doesn't apply in those LGAs. Zonely flags this per-property so you know before you buy.