Greens’ Groundbreaking Rules to Prevent Housing Loss Come into effect

New planning rules won by the Greens to protect existing housing came into effect in the City of Sydney from 1 July 2025.

The changes to City of Sydney’s new planning rules will give council the power to refuse a development – where it would lead to less homes, a national first in housing policy.

The “no net dwelling loss” or “dwelling retention” rules were moved by the Greens Councillor Sylvie Ellsmore in 2023, and received unanimous council endorsement.

The rules responded to an increasing number of developments demolishing smaller, modest flats in suburbs like Potts Point, in order to create luxury apartments where fewer people could live. The new rules empower Council to reject proposals that would result in 15% or more fewer homes than currently exist on a site.

Read about the new rules here.

The rules were strongly supported by residents, including the Potts Point Preservation Society, who helped council identify the number of homes being lost. The community had rallied around buildings like the Chimes in Potts Point, where 80 apartments are proposed to be demolished to make way for 32 luxury units. Watch the video with Sylvie and Matthew explaining the changes here.

The changes faced strong opposition from developers, and heavy lobbying including by former Labor Premier Morri Iemma. Read more in the media investigation which made the lobbying public.

Background:
The new planning controls, developed following a successful Greens motion, were endorsed by the City of Sydney in December 2023.

The changes were exhibited in 2024, and had been waiting at the NSW Planning Gateway for 6 months, for final approval.

Known as “dwelling retention” or “no net dwelling loss” rules, they apply to any redevelopment that would result in the loss of three or more homes, or more than 15% of existing dwellings.

For example, if a 100-unit building is redeveloped, the new development must include at least 85 homes. The rules also prevent developers from replacing small apartment blocks with single luxury homes.

The changes include some flexibility to support families and carers – for example buying two small apartments to create one larger apartment would be allowed.