THE MINISTER FOR PLANNING RECENTLY ANNOUNCED CHANGES TO THE RESIDENTIAL DESIGN CODES, (THE R-CODES) THAT WILL IMPACT ON FUTURE DEVELOPMENT IN WESTERN AUSTRALIA, PARTICULARLY THE DELIVERY OF SMALLER LOTS.

The R-Codes help establish the density of housing by detailing the minimum size of the lot and then the average lot size in an area.  R-20 is the size that many people would recognise in a suburban setting with detached houses and is based on having twenty dwelling units per hectare.  The average area for those lots has been reduced from 500m2 to 450m2 which not only improves flexibility but also improves administration as it reverts to the area set out in the pre-2002 version of the R-Codes.

Some of the changes will assist affordability by changing thresholds, for example, development approval for a single house is now only required on a lots smaller than 260m2, down from 350m2.  This change was strongly supported by industry as the requirement was adding to costs and delays for what are often the more affordable products.

One of the biggest changes is the inclusion of minimum and average lot size for the R80 code for single house and grouped dwelling development rather than using the R-60 as the base before further approval is required.  R80 allows for a minimum lot size of 100m2 with an average of 120m2.

Probably the change that will have the most immediate impact is to the ancillary accommodation (‘granny flats’) section of the R-Codes as the requirement for occupancy by a relative of the main householder has been removed.  The permitted floor space has also been increased from 60sqm to 70sqm.

This means that, if you have a lot of more than 450m2, you can put an ancillary dwelling on site, rent it out and earn an income.  Up until now, if you wanted to realise some of the potential of your land you needed to subdivide, but now it is easier.  If you own a rental property you could also increase your yield by including an ancillary dwelling.  (Seeking professional advice for your circumstance is always a wise idea.)

The other thing that the expansion of ancillary dwellings achieves is mainstreaming the skills for framed construction, which is used widely in other states.  With a broader skills base we may see further innovation in affordable housing including veneer and alternative material products.

The new R-Codes will take effect on Friday August 2, 2013.