The NSW Government has introduced the SEPP to support a resilient rental housing market, enabling a range of built forms and housing options. Among these options are new generation boarding houses, providing affordable and appropriate accommodation for a range of housholeds requiring more flexible accommodation.
Division 3 of the SEPP provides incentives for boarding house developments, enabling the construction of boarding houses in a wider range of residential, mixed use and other zones. A floor space ratio bonus may also apply so long as the zone permits residential flat buildings and the land does not contain a heritage item. Minimum and maximum room sizes apply and larger boarding houses must provide accommodation for a resident boarding house manager.
Resources and incentives for boarding house developments
Housing NSW's Boarding House Financial Assistance Program provides grants for fire safety upgrades in existing boarding houses, which are also available to cover the costs of fire safety features in eligible new boarding houses. It also provides grants for the construction of new generation boarding houses and boarding rooms.
The Department of Planning has published a Fact Sheet on new generation boarding houses (providing en-suite bathrooms and kitchettes).
The NSW Government also encourages retention of boarding house accommodation through the Office of State Revenue’s land tax exemption for boarding houses. Application forms for exemption can be downloaded from the Office of State Revenue web site.
Some Local Councils also make specific provision for boarding houses in their Development Control Plans, such as City of Sydney, Burwood and Waverley.
More information for local governments on boarding house developments can be found here in the Local Government Housing Kit.
Design guidelines
Some examples of new boarding house style developments managed by a community housing providers in Brisbane can be found at
http://www.brisbaneboarders.com.au/properties.htm. Brisbane Boarders are a not-for-profit community housing organisation that offers affordable accommodation through several government supported programs and also in partnership with the private sector.
New style boarding houses are very different from traditional boarding houses. Many provide rooms with en-suite bathrooms and basic cooking facilities, with some shared amenities (such as lounges or kitchens), good solar access and compliance with Basix requirements. Some examples may be found in Dulwich Hill and Petersham in Sydney.
Exterior of a new style boarding house with 19 rooms in Petersham.
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Shared kitchen facility in new style boarding house in Petersham.
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Exterior of new style boarding house in Dulwich Hill, combining studio apartments with boarding rooms and providing 31 units of accommodation.
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Exterior of new style boarding house with 22 rooms in Dulwich Hill.
The Boarding Accommodation Calculator
This calculator can be used to assist private boarding house owners and operators to assess the financial feasibility of boarding house developments (new and existing).
Please note that this calculator is a simple tool for users such as boarding or lodging house investors and operators to use as a guide in developing preliminary assessments of the financial feasibility of a boarding house project. It does not replace the financial feasibility assessment requirements that need to be undertaken to establish financail viability in relation to Section 50(2)(h) of Part 3 applications under the Affordable Rental Housing SEPP.
Disclaimer: Links to this calculator and its user guidelines are provided for the convenience of users and do not constitute in any way financial advice or endorsement of the outcomes of using the calculator by the NSW Land and Housing Corporation. Users must rely on their own, independent financial advice before making any decisions based upon any outcomes derived from this calculator.
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