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Policy changes could fast-track modular construction in land lease developments.
The Land Lease Living Industry Association of NSW is urging the State Government to implement key reforms to unlock new housing supply, particularly through modular construction. The Association argues that outdated planning laws are preventing land lease communities from addressing affordability and supply challenges. (main pic: Uniplan Group manufacturing plant supplies Land Lease Living.)
Association CEO Lyndel Gray, who is set to step down in May, is advocating for three critical changes to support the growth of land lease developments in Greater Sydney.
Firstly, the Association wants the government to remove current restrictions on manufactured home estates in the Sydney Region under the State Housing Planning Policy. Gray says this would increase land availability and create a streamlined planning pathway, allowing more greenfield developments to proceed.
Secondly, the Association is calling for a broader definition of manufactured homes to reflect the reality of modern construction methods. The current definition restricts manufactured homes to prefabricated buildings produced offsite before installation. The Association argues that this should be expanded to allow for both offsite and onsite modular construction under a more flexible approval and certification process.
“The outdated definition fails to reflect contemporary construction methods and limits innovation in housing supply,” Gray said. “Enabling both offsite and onsite modular construction under a fit-for-purpose regulatory framework would allow the sector to deliver homes faster and more efficiently.”
The third recommendation is for planning and building reforms to be undertaken in parallel with thorough industry consultation. The Association stresses that any changes must protect homeowner rights under the Residential (Land Lease) Communities Act 2013, maintain eligibility for Commonwealth Rental Assistance, and ensure manufactured homes are not classified as permanent fixtures, which could affect leasing and tax entitlements.
Gray says that while demand for land lease living continues to rise, existing laws are holding the sector back. “We cannot afford to let outdated planning and building laws dictate the future of affordable housing. NSW must act now to modernise regulations and fully unlock the potential of modular housing in land lease communities.”
With around 500 land lease communities in NSW housing more than 34,000 people, the sector could expand significantly if regulatory barriers were addressed, creating more housing options at a time of critical demand.
