Changes to New South Wales planning to improve housing affordability

By the resi financial blog team, 04 September 2013

NSW plans to make housing affordable

Anyone looking into the best home loan for first home buyers could be interested to hear that the New South Wales (NSW) government has recently proposed changes to the planning rules for the state.

The proposed changes include making the sizes of lots smaller, as well as building smaller studios and townhouses to help increase housing affordability.

Chris Johnson, the chief executive officer for Urban Taskforce, said that Sydney had a reputation for being one of the most expensive cities in the world, and it was essential for the cost of new homes to be lowered - especially in the face of population growth in the near future.

"The NSW Government proposal to reduce minimum lot sizes down to 225 square metres and even down to 125 square metres in certain locations will provide flexibility for the market to provide smaller and more affordable houses," said Mr Johnson in an August 29 statement.

"Good design can mean that smaller houses can work well for home owners particularly through open planning and careful design of furniture."

This could be fantastic news for anyone interested in purchasing their first home in the NSW capital city. With an increased affordability of property, this opens the market to a larger number of potential buyers.

These affordability measures need to be extended throughout the city, not just to Growth Centres, according to Mr Johnson.

"A broader State Environmental Planning Policy could support smaller lot sizes for all new greenfield housing areas across the state.

"The planning rules need to continue to encourage innovation from the private sector in the provision of affordable housing and ensure fast approvals to further reduce costs."

If these developments go ahead in the future, securing the cheapest fixed rate home loan to purchase a home will become an important factor for any potential first home buyers.

Categories: Personal Finance, Property Investment