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The Low-Rise Housing Diversity Code Explained: A Fast-Track Path to Smarter Development in NSW

  • Writer: Lina Zheng
    Lina Zheng
  • 5d
  • 3 min read

What Is the Low-Rise Housing Diversity Code?

The Low-Rise Housing Diversity Code (LRHDC) is a NSW Government reform designed to make it faster and easier to build small-scale, well-designed homes like duplexes, terraces, and manor houses.


It allows property owners and developers to bypass lengthy council approvals through a Complying Development Certificate (CDC) process that can be approved in as little as 20 days — if the design meets all Code requirements.


The goal: increase housing supply, diversify housing types, and reduce red tape while maintaining neighbourhood character and good design standards.


Where Does the Code Apply?

The Code applies across NSW — in zones where these housing types are already allowed under local council planning instruments, including:


  • Zone R1 – General Residential

  • Zone R2 – Low Density Residential

  • Zone R3 – Medium Density Residential

  • Zone RU5 – Village


It enables faster approvals for eligible developments under the State Environmental Planning Policy (SEPP Exempt and Complying Development Codes) 2008.


What You Can Build Under the Code

Under Part 3B of the SEPP, the following are considered complying developments:


  • 🏠 Dual Occupancies – two homes on one lot (attached or detached).

  • 🏘️ Manor Houses – up to four homes in a two-storey building.

  • 🏡 Terraces (Multi Dwelling Housing) – multiple attached homes, each with their own title.


These types of housing are designed to create a missing-middle between detached houses and high-rise apartments — providing flexible, affordable options for families, downsizers, and investors.

What You Can Build Under the Code

Key Requirements for Complying Development

To qualify for fast-track approval, your development must meet both lot and design standards under the Code and the Low-Rise Housing Diversity Design Guide.


Lot Requirements

  • Lot must be in RU5, R1, R2 or R3 zones.

  • Must have lawful access to a public road.

  • Minimum lot sizes:

    • 400 m² (for dual occupancy)

    • 600 m² (for manor houses or terraces)

  • Lot widths typically range from 12 m to 21 m depending on the type of housing.


Setback & Height Standards

  • Max height for dual occupancies and manor houses: 8.5 m

  • Max height for terraces: 9 m

  • Primary road setbacks: 4.5 – 10 m (depending on lot size)

  • Side and rear setbacks vary from 0.9 m to 15 m based on height and lot type.

  • Landscaped area requirement: at least 50 % of the lot area minus 100 m².


Car Parking & Access

  • Minimum of 1 off-street car space per dwelling.

  • Garage doors and driveways must meet Australian Standard AS/NZS 2890.1.

  • Access may be required from a lane or secondary road for narrow lots.


Design and Privacy Requirements

All developments must follow the Low-Rise Housing Diversity Design Guide, which

promotes good architecture, sustainability, and community amenity.


This includes:

  • Ensuring each dwelling faces a public road.

  • Providing adequate private open space (8 – 16 m² per dwelling).

  • Including privacy screens for windows and balconies overlooking neighbours.

  • Meeting noise, flood, bushfire, and infrastructure standards.


Land Exclusions and Restrictions

Not all sites are eligible for complying development.


The Code does not apply to:

  • Battle-axe lots or lots with secondary dwellings.

  • Unsewered land or land subject to landslide risk.

  • Flood control lots without engineering certification.

  • Land within certain heritage or conservation areas.

  • Bush fire prone land unless specific standards are met.


Benefits of the Low-Rise Housing Diversity Code

The Code supports a smarter, faster approach to housing delivery in NSW:

  • 🕒 Fast-Track Approvals – CDC in as little as 20 days.

  • 🏘️ More Housing Choice – duplexes, terraces, and manor houses.

  • 🌿 Better Design – homes that fit neighbourhood character.

  • 💰 Cost Efficiency – less time and money spent on planning delays.

  • 🏡 Liveable Communities – greener, diverse neighbourhoods with open space and amenity.

Benefits of the Low-Rise Housing Diversity Code

How OwnerDeveloper Can Help

At OwnerDeveloper, we help homeowners and investors turn their land into opportunity under the Housing Diversity Code.


Our team guides you through the entire process — from site feasibility and design, to approvals, construction, and project management.


We specialise in:


Ready to Unlock Your Property’s Potential?

If you own land in an eligible zone and you’ve been wondering what you can do with it, this Code might be your path to creating value and long-term wealth.


📞 Book a free consultation with OwnerDeveloper to see if your site qualifies for a Complying Development Certificate under the Low-Rise Housing Diversity Code.

Ready to Unlock Your Property’s Potential?

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