The South Australian Government is considering a review of current laws that prevent homeowners from renting out granny flats on their property.

Known as ancillary dwellings, granny flats are typically built in backyards of homes and designed to accommodate dependent relatives. South Australian laws don’t allow these dwellings to be rented out or be built as an investment property.

Property price escalations that have made it very challenging for South Australians to enter the market, combined with inadequate rental housing supply have led to a housing crisis, not only impacting local communities but also those looking to relocate to the State for employment opportunities.

The Labor Government’s plan for A Better Housing Future, which aims to address the current pressures in South Australia’s housing market, indicates a need for 95,000-115,000 additional dwellings in the state by 2032 to accommodate the projected growth in population.

"We want to make housing more accessible to more South Australians – which is why we are getting to work on a series of projects and initiatives to make housing and renting as affordable as possible," South Australian Planning Minister Nick Champion said.

Key initiatives include releasing more land, delivering more social and affordable housing, and introducing rental reforms. Ancillary accommodation, which the Minister believes, will ease housing pressure in the State, will be covered in the reforms.

However, there are calls from advocacy groups to introduce a national legislation that would allow granny flats to be rented out to private parties across Australia.

While South Australia and Victoria restrict the use of secondary dwellings to only immediate family members, states such as New South Wales, Western Australia and Queensland allow granny flats to be rented out. Queensland, for instance, allowed the change as an emergency planning measure in September 2022 to tackle the rental crisis, with the Government looking to provide affordable housing to Queenslanders by tapping into this underutilised housing segment.

Meanwhile, Federal Housing Minister Julie Collins hosted state and territory housing ministers earlier this week to discuss key issues such as housing supply and reforms to renters’ rights.

Image: https://www.baahouse.com.au/blog/avalonbeach-grannyflat-winsaward