Game-changing afforable housing proposal stalled by red tape

A game-changing NSW government initiative to revolutionise the housing industry has only managed to get one single approval through the bureaucratic planning system, it can be revealed.

A game changing NSW government initiative to revolutionise the housing industry has only managed to get one single approval through the bureaucratic planning system.

“Despite there being a housing supply crisis the dead hand of the NSW Planning system has once again let us all down,” Tom Forrest chief executive of the Urban Taskforce said. “Nothing has been built.”

Premier Dominic Perrottet and Cities Minister Rob Stokes unveiled the State Significant Development planning pathway to encourage affordable housing two years ago.

Mr Perrottet, who was treasurer at the time, said: “We’re leading the way in Australia when it comes to build-to-rent housing, making it easier for more people to have access to housing that suits their needs.”

And Mr Stokes, who was planning minister, said: “As our housing system evolves to better meet the needs of NSW households and families, it’s critical our planning system is responsive and flexible to new development models.”

NSW Premier Dominic Perrottet Picture: Flavio Brancaleone

Cities Minister Rob Stokes. Picture: Gaye Gerard

Despite the rhetoric nothing has been built while the Community Housing Industry Association said the social housing waitlist increased last year by 15 per cent to almost 58,000 families and individuals.

Since the announcement there have been nine applications to begin the process for 2,941 build to rent properties with four going on to be lodged and just one receiving consent.

That was passed last week for GQ Parramatta, a 61 storey build to rent tower with 391 apartments.

“That consent was scrambled through just before the Government went into caretaker mode for the election after we put in a freedom of information request that showed nothing had happened,” Mr Forrest said.

“Almost 3,000 new dwellings are caught up in the planning system. What does it take to get the planners to act quickly? Why is it taking so long and what is the Government going to do to fix this?” he said.

“If ever there was evidence needed that root and branch reform was needed in the NSW planning system, this is it.”

The scheme has only seen one project approved. Picture: Jonathan Ng

Chris Orr, director of Residential at Savills Australia, said the build to rent scheme was attractive to institutional investors because it provided a predictable income stream.

“There is European capital that wants to invest in our market but we have a bottleneck in our planning system that is stopping that,” he said. “If you cannot build you cannot invest.”

Mr Orr said that cutting the red tape in the NSW planning system needed to be one of the top priorities for “whoever gets into government next” to prevent the state suffering long term reputational damage with investors.

“Over time we have this dialogue and it can turn into a reputation that NSW needs to be careful of getting.”

A spokeswoman for Planning Minister Anthony Roberts said he had made significant changes to the policy last year to speed up the process.

“These changes meant more projects could be lodged for State assessment, ensuring more consistency in assessments across NSW, and the applications no longer needing to demonstrate how the building could be converted to another commercial use,” she said.

“The first application was approved last week, and there’s another 13 proposals at various stages in the planning system.

“While we’ve set up a pathway for the private market to deliver BTR projects, we’re also taking the lead on government land, with 900 homes on the way for the Redfern-North Eveleigh precinct, with 600 set aside for affordable and build-to-rent housing,” she said.