Terraces by complying development in R2 LMR areas
Can terraces go through complying development, even where the local plan prohibits them? In areas covered by the NSW Low and Mid-Rise Housing Policy (LMR), possibly.
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Can terraces go through complying development, even where the local plan prohibits them?
In areas covered by the NSW Low and Mid-Rise Housing Policy, or LMR, possibly. Many local plans prohibit terraces in the R2 Low Density Residential zone, but section 170 of the Housing SEPP permits them in LMR areas. Complying development only needs permissibility under an environmental planning instrument, and a SEPP counts. So the Low Rise Housing Diversity Code may apply.
The lot test: zoned R1, R2, R3 or RU5, with access to a public road. At least 600 m², or the local plan's minimum if higher. At least 21 metres wide at the building line. The LMR figures of 500 and 18 are for development applications, or DAs, only.
On a 21 metre lot, three 6 metre terraces fit exactly, with no margin, once the side setbacks are included. The code allows up to two storeys and 9 metres, and at least one car space each.
A complying development certificate, or CDC, is ruled out on battle-axe lots or lots with a secondary dwelling, bushfire-prone, unsewered or landslide land, and heritage-affected land, plus land excluded from LMR, including four outer council areas.
Bottom line: a site that ticks every box may qualify, subject to a s 10.7 planning certificate and registered certifier sign-off. Some NSW Planning guidance pages still say the council's LEP must permit it, so raise this with your registered certifier early.
Check your site with SN Architects, at snarchitects.com.au.
Key points
Housing SEPP s 170 permits terraces with consent in R2 inside LMR areas, except on excluded land (Housing SEPP s 164), and complying development only needs the use to be permissible with consent under an environmental planning instrument applying to the land (Codes SEPP cl 1.18(1)(b)), so the Low Rise Housing Diversity Code may apply.
The lot test: zoned R1, R2, R3 or RU5 with access to a public road, at least 600 m² (or the LEP minimum where higher), 21 m wide at the building line (Codes SEPP cl 3B.33).
The LMR figures of 500 m² and 18 m wide at the front building line (s 172(3)) are for DAs only.
Some lots and land are ruled out, including battle-axe lots, lots with a secondary dwelling, heritage-affected land and land excluded from LMR.
A site that ticks every box may qualify, subject to a s 10.7 planning certificate and registered certifier sign-off.
Some NSW Planning guidance pages still say the council's LEP must permit it, so raise this with your registered certifier early.
Check your site
Check your site with SN Architects
www.snarchitects.com.au | info@snarchitects.com.au
As at and sources
General information only, not planning advice. Current as at October 2026 (Housing SEPP 2021 and Codes SEPP 2008 as in force from 11 September 2026).
Sources: NSW Legislation, https://www.legislation.nsw.gov.au
Based on content from the New South Wales Legislation website at 8 October 2026. For the latest information on New South Wales Government legislation please go to https://www.legislation.nsw.gov.au.
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Disclaimer
This is general information only, not planning, legal or financial advice, and it is not an assessment of any particular property. Planning rules change and every site is different. Before relying on it, obtain a section 10.7 planning certificate for your property and advice from a qualified town planner or registered certifier. To the extent permitted by law, SN Architects accepts no liability for any loss arising from reliance on this information. Information current as at October 2026. © SN Architects 2026.
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