_Small Lot Housing Gets Smaller
The Victorian State Government recently gazetted changes to clauses 37.07 (Urban Growth Zone) and 72.04 (Incorporated Documents) in a number of Planning Schemes through Amendment GC206 by introducing a new version of the Small Lot Housing Code (SLHC) (November 2024). The affected municipalities are located in the growth corridors of metropolitan Melbourne include: Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham.
The previous version of the SLHC will continue to apply to areas outside metropolitan Melbourne and there is a transition period where developers can opt to use either the old or new SLHC noting that from 31 December 2026, the new SLHC will apply.
The previous version of the SLHC albeit with some flaws, has been extremely effective in streamlining the planning process by exempting dwelling on lots less than 300 square metres from the need for a planning permit subject to complying with the requirements of the SLHC.
Type A and Type B of the SLHC applies to all lots less than 300 square metres with Type B allowing a slightly denser built form outcome typically, in areas of a high amenity. The new SLHC revises some of the existing Type A and Type B standards and introduces a new Type C, which is to apply to lots less than 100 square metres.
Under the revised Type A and B standards, the minimum car parking requirement has been reduced to one car space for all dwellings. Noting that this is a minimum only, it will be interesting to see how this plays out from a marketability perspective and whether developers will be tempted to sell three or more bedroom homes with one car space? Additionally, the minimum widths required for balconies have been increased to provide larger areas of private open space and overlooking controls have been relaxed.
As mentioned earlier, Type C allows for a higher density housing typology to be built on lots less than 100 square metres. The new Type C provides a building envelope that incorporates larger setbacks to allow for private realm tree planting, dwellings up to three or four storeys in height and standards which protect its internal and external amenity.
In practice, the changes to the SLHC including the new Type C are welcomed in particular, as they will contribute to more affordable housing options. It will be interesting to see the appetite that developers will have to ‘roll out’ Type C housing products and how this is balanced with traditional buyer expectations for more land in growth areas.
To view the new SLHC, please use the link below.