Victoria changes regulations to boost housing supply

“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,” Kilkenny said.

While the previous 2019 amendment to the small lot housing code allowed homes on blocks less than 300 square metres to be built without a permit if design standards were met, the new rules allow a new type of houses, including townhouses on skinnier and longer blocks to be built on lots less than 100 square metres without a permit.

The Allan government also improved design standards for lots under 300 square metres to allow home owners to enjoy larger balconies, more windows facing the street, and more space for trees and the removal of the requirement for a double garage.

Additionally, the new small lot housing code focuses on having more greenery and smarter housing designs and homes up to four storeys.

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

The small lot housing code applies to residential and mixed-use precinct structure plans within Melbourne’s urban growth zone, along with special purpose zones in the municipalities of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham, as well as in Geelong, Ballarat, Baw Baw and Knox.

While the new code is immediate, the builder will have a two-year transition period to adjust to the new rules.

The Allan government said this is just another action to deliver more affordable homes throughout the state and will continue to work on the housing issue and enable Victorians to invest by either buying, building or subdividing properties.

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