LMR Housing Reforms in NSW:Where They Apply, What’s Permitted, and How to Comply

The NSW Government introduced the Low and Mid-Rise (LMR) Housing Reforms to increase housing supply and housing choice across NSW. These reforms form part of the State Environmental Planning Policy (Housing) 2021 (Housing SEPP) and create new opportunities for medium-density development in well-located areas.

Importantly, the reforms introduce non-discretionary development standards that can override more restrictive local planning controls. As a result, landowners and developers can pursue housing types that local controls may not have previously supported.

This guide explains:

The key standards and constraints you need to consider

• Where the LMR housing reforms apply
• Which zones qualify
• What housing types are permitted
• Whether a DA or CDC pathway applies
• The key standards and constraints you need to consider

Where the LMR Housing Reforms Apply

The LMR housing reforms focus on locations close to public transport, jobs and services. Specifically, they apply to land located within an 800-metre walking distance of nominated town centres and train, metro or light rail stations. The NSW Government identified 171 locations across Greater Sydney, the Central Coast, Illawarra-Shoalhaven and Lower Hunter/Newcastle.

However, not every property within these areas qualifies for the reforms. Certain lands remain excluded. These exclusions include:

• Some bushfire-prone land
• Coastal wetlands
• Land near dangerous goods pipelines
• Certain aircraft noise affected land
• Heritage items listed under a Local Environmental Plan or the State Heritage Register

In addition, the reforms do not apply to land already affected by the Transport-Oriented Development (TOD) Program.

Before relying on the reforms, it is important to confirm a site's eligibility against the Housing SEPP rather than relying solely on the online mapping viewer. The NSW LMR Viewer provides guidance only and does not determine permissibility.

Which Zones the LMR Reforms Cover

The LMR reforms apply to selected residential land within:

• R2 Low Density Residential zones
• R3 Medium Density Residential zones
• R4 High Density Residential zones

Importantly, eligibility depends on both zoning and location. Consequently, a site must sit within a qualifying LMR area before it can benefit from the new provisions.

Furthermore, the Housing SEPP can override more restrictive LEP and DCP controls where the non-discretionary standards apply. This provides greater certainty during the development assessment process.

What Development Types Are Enabled

Subject to location, exclusions and compliance with the SEPP’s standards, the LMR framework enables:

• Dual occupancies (statewide/R2 via Stage 1; broader LMR context via Stage 2)
• Terraces/townhouses (multi‑dwelling housing) within LMR areas
• Residential flat buildings (mid‑rise apartments) in suitable zones/locations within LMR areas
• Shop‑top housing where appropriate within LMR areas

Related 2025 amendments further expanded opportunities or clarified settings for co‑living, seniors housing and build‑to‑rent, complementing the LMR uplift.

Do the LMR Housing Reforms Apply to DAs and CDCs?

In most cases, developers will use the Development Application (DA) pathway.

The reforms introduce non-discretionary development standards that councils must consider when assessing DAs. Therefore, if a proposal satisfies those standards, a consent authority cannot refuse the application on those grounds alone.

However, some housing types may also qualify for a Complying Development Certificate (CDC) pathway. This generally occurs where separate provisions under the Codes SEPP or Housing Pattern Book pathway apply.

As a result, developers should assess the most suitable approval pathway at the beginning of the project.

Key Standards Under the LMR Housing Reforms

The LMR housing reforms consolidate statewide controls that commonly include (but aren’t limited to):

1. Building height and FSR – Statewide, non‑discretionary standards now govern height/FSR for LMR typologies, reducing local variation and lifting clarity.
2. Minimum lot size/width – Standardised minimums apply across typologies to simplify feasibility and subdivision analysis (exact values vary by building type and zone). Always check the latest SEPP text for your site.
3. Storey controls within 400–800m bands – Stage 2 introduced different outcomes between inner (≤400m) and outer (400–800m) areas, including storey caps for residential flat buildings and shop‑top housing (e.g., up to six storeys in inner areas and up to four in outer areas, subject to height limits and other standards).
4. Mapped eligibility – The 800m walking distance is measured along publicly accessible pedestrian routes to a nominated centre boundary or station entrance. Use the SEPP definitions/mapping and treat external viewers as guides, not determinative.
5. Exclusions and constraints – LMR includes heritage conservation areas but excludes heritage‑listed items; constrained land such as bushfire‑prone/coastal wetlands, dangerous goods pipeline corridors, or high aircraft‑noise areas are typically excluded.

Housing Pattern Book: Released 2025

To lift design quality and streamline approvals, NSW released the Housing Pattern Book in 2025—a curated set of architect‑designed patterns and a fast‑track pathway for eligible projects (including a dedicated CDC route with 10‑day approvals for certain low‑rise patterns from July 2025). The Planning Portal has since embedded Pattern Book fields into DA workflows.

Practical Checklist for Applicants (LMR Focus)

• Confirm eligibility: Check if the site is within an LMR area using official mapping and the SEPP definitions; treat the LMR Viewer as indicative only.
• Select the right typology: Align your scheme (dual occ, terraces, RFB, shop‑top) to the site’s zone and LMR inner/outer band.
• Test non‑discretionary controls: Height, FSR, lot size/width and storeys (inner vs outer). These standards trump more restrictive LEP/DCP settings.
• Check exclusions and overlays: Heritage items and hazard/constraint mapping can disqualify LMR benefits.
• Pick the pathway: Most LMR outcomes will be DA; consider Pattern Book CDC only if your design and site meet the strict criteria.

·

Common Pitfalls Under the LMR Reforms

• Relying solely on the online viewer rather than confirming eligibility against the legislated mapping/SEPP schedules.
• Overlooking inner vs outer area rules and their impact on storeys/height.
• Assuming TOD controls and LMR stack—they don’t; LMR is generally excluded where TOD applies.
• Missing 2025 clarifications (e.g., treatment of basements in storey calculations, or expanded provisions for diverse housing types).

Navigating the LMR housing reforms requires a precise read of the Housing SEPP, accurate site eligibility checks, and smart design responses aligned with the Pattern Book and the inner/outer area rules. If you’re a developer, landowner or council seeking certainty on yield, feasibility and approval strategy, tailored advice up‑front pays off.

Need a clear strategy for your LMR site?

Our planning team specialises in LMR Permissibility Reviews, SEPP interpretation, feasibility testing against non‑discretionary standards, and DA preparation aligned to the Pattern Book. Get in touch for a site review and LMR pathway advice.

Also check out our Frequently Asked Questions here.