The NSW Government has endorsed the City of Sydney’s new planning rules to prevent the loss of existing homes—a national first in housing policy.

The “no net dwelling loss” rules, moved by the Greens and adopted by the City of Sydney Council, will now apply to all new development applications across the local government area.

These rules empower Council to reject proposals that would result in fewer homes than currently exist on a site.

The rules come in response to an increasing number of developments demolishing smaller, modest flats in suburbs like Potts Point, in order to create luxury apartments.

City of Sydney Greens Councillor Sylvie Ellsmore said:
“This is a critical step in preventing Sydney from becoming an enclave for the ultra-wealthy. These rules protect affordable housing from being demolished in the middle of a housing crisis.

“Despite the urgency, the NSW Labor Government delayed these reforms in the planning gateway for six months. We’re relieved they’ve finally been approved.

“Developers will no longer be able to demolish older, more affordable flats and replace them with fewer, ultra-luxury apartments that only the wealthy can afford.

“Sydney has some of the most expensive housing in the world. In a crisis where we don’t have enough homes, protecting existing housing is just as important as building new stock. It’s unacceptable that people could be evicted from affordable homes so developers can make millions building fewer luxury apartments—our new rules put a stop to that.

“Hundreds of homes have already been lost in inner-city Sydney, with many more under threat. The Greens moved these changes and we’re proud to have secured the support of the Council and the NSW Government to secure this win,” Councillor Ellsmore said.

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.

More information:
Planning proposal: Dwelling Retention | Planning Portal - Department of Planning and Environment

Planning proposal documents submitted by Council, including details some of the developments that prompted the change.