Recent developments amid the housing crisis has seen the City of Sydney and the NSW Government hold contrasting opinions on land usage for housing within the LGA's boundaries. 

Within the LGA, only two of 32 Local Environment Plans allow for terraces, given they fall under R2 zoning regulations. As a result, the much-loved housing typology is unable to be utilised for future housing developments, which the Minns Government believes to be an oversight.

The NSW Government believes that terrace houses could pose a potential solution to the current crisis, with Minister for Planning and Public Spaces Paul Scully indicating that the much-loved residential dwellings could easily increase supply.

“It’s surprising and disappointing that housing types synonymous with Sydney’s housing past are not permitted to be part of Sydney’s housing future because of local planning laws,” he says.

“If we were to put a terrace on five percent of lots of land zoned low density, we would get 67,500 new homes, which is more than 20 percent of what we need to deliver by 2029.

“We are not using our land well and it is costing us.”

Scully views infill housing caters for a wide range of households on low-to-moderate incomes. He believes terraces must be reconsidered by Sydney councils.

“I will be writing to councils whose LEPs presently do not permit terraces and small apartment blocks in these residential zones, to make it clear that these types of houses are critical to address the housing crisis.

“We want to make infill housing a priority. It’s cheaper to deliver and better for the environment.”

Interestingly, City of Sydney is offering two heritage-listed terrace sites at Beaconsfield and Darlinghurst. Expressions of interest have recently closed, with Council hopeful the homes will be sold well below market value by the eventual developers.