Key Takeaways:
- A NSW parliamentary inquiry is investigating the possibility of overriding council authority to allow for the construction of second homes on large rural properties.
- The proposed change would only apply to properties larger than 20,200 square meters zoned for rural or environmental use.
- The aim is to make it easier for families to live together, reducing the cost of housing, aged care, and childcare.
- However, some experts argue that the policy may not be effective in addressing housing affordability and could lead to unintended consequences such as the loss of agricultural land.
- The inquiry’s report is due in February next year, and the government is not bound to adopt its findings.
Introduction to the Issue
The case of Pamela Misius, a 77-year-old woman who owns a 40,000 square meter property in Yarramundi, New South Wales, highlights the challenges of building a second home on large rural properties. Despite having a large property, Ms. Misius was only allowed to build one home, and her family’s attempts to construct a second home were rejected by the Hawkesbury City Council. The family’s story is not unique, and a NSW parliamentary inquiry is now investigating the possibility of overriding council authority to allow for the construction of second homes on large rural properties.
The Proposal to Override Council Authority
The inquiry, led by John Ruddick, is exploring the idea of creating a new provision under the state government’s planning laws that would allow for the construction of second homes on properties larger than 20,200 square meters zoned for rural or environmental use. The proposed change would make it easier for families to live together, reducing the cost of housing, aged care, and childcare. Mr. Ruddick argues that the current system is constrained by excessive red tape, and that the proposed change would help address the housing crisis in New South Wales.
Concerns and Criticisms
However, not everyone is convinced that the proposed change is the solution to the housing crisis. Nicole Gurran, a professor of Urban and Regional Planning at the University of Sydney, argues that the policy is not ambitious enough to result in a meaningful number of extra houses. She believes that councils should retain their decision-making powers, as a blanket policy for developing on rural land could lead to unintended consequences. Additionally, Local Government NSW (LGNSW) warns that the building of homes on farmland could lead to the zoning being changed in the future from agricultural to residential use, which could have long-term consequences for agricultural productivity.
The Impact on Housing Affordability
The proposed change is intended to make it easier for families to build second homes on large rural properties, which could potentially increase the supply of housing and reduce costs. However, Professor Gurran argues that the policy may not be effective in addressing housing affordability, as it is primarily focused on making it easier to build second homes on existing properties rather than increasing the overall supply of housing. Philip Walton, who is fighting to build a second home on his mother-in-law’s property, believes that the proposed change would help address the housing crisis, but acknowledges that it may not be a silver bullet.
The Need for Rate Reform
Councils believe that if the proposed change is implemented, rate reform will be necessary to ensure that the costs of servicing properties with multiple dwellings are reflected in the rates paid by property owners. Currently, rates are calculated on the value of the land, rather than the buildings on it, which could lead to a situation where properties with multiple dwellings are undertaxed. Mr. Walton is willing to pay 50% more in rates if he is allowed to build a second home on the property, but the issue of rate reform is complex and will require careful consideration.
The Future of Rural Land Use
The inquiry’s report is due in February next year, and the government is not bound to adopt its findings. However, the issue of rural land use and the construction of second homes on large properties is likely to remain a contentious issue. The NSW Farmers Association argues that the lack of housing is limiting agricultural productivity, and that the construction of second homes on farmland could help address this issue. However, others argue that the construction of homes on farmland could lead to the loss of agricultural land and the fragmentation of rural communities. Ultimately, the future of rural land use will depend on a careful balancing of competing interests and priorities.