UNSW City Planning 2021 - Planning in Times of Uncertainty

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UNSW Built Environment

Alexander Speers

Incentive-Based Approaches to Increasing Affordable Housing: A Policy Evaluation of Recent NSW State Government Planning Policies ‘This thesis investigates the role of incentive-based planning approaches to generate affordable housing through a policy evaluation of the ARHSEPP and the potential impacts of the recently proposed Housing SEPP.’

CITY PLANNING 2021 Planning in times of uncertainty

Master of City Planning

Current pressure across the housing system is resulting in a lack of affordable rental housing. Accordingly, NSW state government approaches to increase affordable housing stock over the past decade have focused on encouraging private sector development through planning system levers. The primary inventive-based planning approach has been the Affordable Rental Housing State Environmental Planning Policy 2009 (ARHSEPP). However, the ARHSEPP was implemented with no monitoring mechanisms or affordability requirements to measure its outcomes, impact and effectiveness. This thesis investigates the role of incentive-based planning approaches to generate affordable housing through a policy evaluation of

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the ARHSEPP and the potential impacts of the recently proposed Housing SEPP. It draws on recent studies, a policy evaluation, interviews with stakeholders and stakeholder submissions on the new SEPP. Findings suggest that incentive-based approaches to increasing affordable housing delivery by the private sector have been ineffective and only generated a modest number of affordable dwellings. More proactive planning policies are required, including additional subsidies and grants to make affordable housing delivery financially sustainable for non-government actors, including community housing providers. Finally, more direct government intervention in the new reforms is required to incentivise housing providers and developers to deliver significant amounts of affordable and diverse housing.


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