Chamber calls for dual occupancy subdivision

The Peninsula Chamber of Commerce has called for a review of the current dual occupancy rules that prohibit subdivision.

"With the ever-increasing pressure on providing affordable housing and with rising property prices, the Chamber believes that it is timely for the new Council to reconsider the re-introduction of Strata and Torrens Title subdivision in residential zones," said Chamber president Mr Matthew Wales.

"Up until the mid-1990s, it was possible to build dual occupancies in Gosford in the then 2(a) (now R2) residential zones and subdivide the two dwellings subject to certain development controls which included providing on-site car parking and payment of developer contributions," Mr Wales said.

"These controls were abolished by the then Gosford City Council in 1995 which, in our view, limited housing choice and affordability and contributed, in part, to rising property prices," he said.

"As a result of the housing crisis, the State Government has since introduced the current secondary dwelling (granny flat) guidelines that has led to the proliferation of back yard dwellings that do not have to provide any parking nor pay any developer contributions.

"We acknowledge the importance and value of granny flats that provide much-needed accommodation across the city in the high-demand rental sector.

"However, these developments do not provide for an affordable housing product especially for first home buyers because they cannot be subdivided."

Mr Wales said he was not suggesting that the granny flat provisions should be repealed but that another layer of development controls should be reintroduced to enable strata and Torrens Title subdivisions.

"By re-introducing the ability for land owners to subdivide dual occupancies that comply with a higher set of development standards, the Council will be able to provide a greater range of housing choice and ensure that suitably sized R2 residential zoned land can be put to a higher and better use.

"It would also enable the Council to derive developer contributions for important infrastructure which they currently do not levy on granny flats.

"The Chamber is calling on the Central Coast Council to consider re-introducing these controls as a way of addressing both housing choice and housing affordability and offsetting the increasing number of granny flats being built in ordinary back yards."

Mr Wales said believed a failure to take these steps could result in a social housing problem on the Peninsula in the future.

"Granny flats have a different life span to a duplex," Mr Wales said.

"I would imagine that within 15 to 20 years there would have to be some serious maintenance work done on a granny flat but the bricks and mortar of a standard duplex would not require that level of work for perhaps 50 years.

"The granny flat provisions are only really catering for the rental sector of the property market," he said.

The absence of duplex subdivisions on the Peninsula meant that there was a shortage of property on the Peninsula in the high-demand market segments of first home buyers and retirees..

"If the council was concerned about the proliferation of dual occupancies through strata title subdivisions they would only have to tighten up their controls to set higher development standards."

In particular, Mr Wales said Torrens and Strata subdivisions could be reintroduced by amending the LEP to remove zone R2 from clause 4.1(a) which sets the minimum lot size for a strata plan scheme it 550 square metres.

"That minimum lot size means you can't subdivide a typical residential lot on the Peninsula to come up with two lots of 550 square metres," he said.

Mr Wales said he had been on the record as stating that a lot of very good granny flats were being built, but "they do not have a comparable longevity to duplex developments".

"Granny Flats are allowed through the Affordable Housing SEPP which overrides the planning controls and so long as a granny flat ticks all the boxes council cannot refuse permission," he said.

He said that he understood that, during the current administration period, the Central Coast Council did not have a mandate to make major changes to the LEP but it could do the research and put the necessary reports together to enable the newly-elected councillors to act quickly on this issue when they come into power next September.

Media release, 13 Oct 2016

Interview, 13 Oct 2016

Matthew Wales, Peninsula Chamber of Commerce