
More homes mean more opportunities – and new updates to the Small Lot Housing Code are set to make it easier to build diverse and affordable housing in Melbourne’s growth areas and regional cities.
Minister for Planning Sonya Kilkenny has announced changes to the code, simplifying the process for getting different types of homes built on smaller parcels of land.
The code previously allowed homes to be constructed on blocks smaller than 300 square metres without a planning permit if design standards were met. Now, based on industry feedback, the updated code introduces a new category for lots under 100 square metres, allowing the construction of townhouses on narrower and longer blocks without requiring a permit.
Enhanced design standards have also been introduced for lots under 300 square metres to align with modern living needs. These include features like larger balconies, more windows facing the street, and increased space for trees and greenery. The updated code removes certain requirements, such as mandatory double garages, paving the way for smarter designs, more greenspace, and homes up to four storeys.
The Small Lot Housing Code applies to residential and mixed-use Precinct Structure Plans within Melbourne’s Urban Growth Zone, as well as specific zones in Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea, Wyndham, Geelong, Ballarat, Baw Baw, and Knox.
These updates aim to enhance housing diversity and affordability, creating more options for smaller families and single-person households to find homes that suit their needs.
A two-year transition period will allow time for adjustment, with developers able to use the new standards immediately. The current code will remain in place until the end of 2026.
The changes are a result of extensive consultation with industry stakeholders, building on the original code introduced in 2019.
To learn more about the updated Small Lot Housing Code, visit vpa.vic.gov.au/project/slhc2.
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