Victorian Government’s Reforms to Make Building Granny Flats in Victoria Easier
The Victorian Government has introduced significant changes to simplify the process of building granny flats in Victoria. These reforms aim to streamline approvals, reduce bureaucratic hurdles, and provide clearer guidelines for homeowners.
1. Changes to Planning and Building Systems
Effective from 14 December 2023, the following updates were introduced:
- No Planning Permit Required in Most Cases: If your property is not affected by specific restrictions such as flooding or environmental controls, you no longer need a planning permit to build a small second home.
- Building Permit Still Required: A building permit is mandatory to ensure compliance with siting, amenity, design, and safety requirements.
- No Subdivision Allowed: Small second homes cannot be subdivided or sold separately from the main dwelling.
These changes were implemented through Amendment VC253 to the Victoria Planning Provisions and Building Amendment (Small Second Dwellings) Regulations 2023, which updated the Building Regulations 2018 to align planning and building systems.
2. Expanded Housing Options
The reforms are part of the Victorian Government’s Housing Statement: The Decade Ahead (2024-2034), which emphasizes the need for increased housing supply and affordability. Small second homes offer a flexible and cost-effective housing solution for families, renters, and investors.
Who Can Occupy a Small Second Home?
One of the most significant benefits of small second homes is their flexible occupancy rules. The following individuals can live in or rent out a small second home:
- Family members, including dependent relatives.
- Renters, including unrelated individuals or families.
All small second homes must comply with Victoria’s residential tenancy laws, which cover minimum room sizes, essential facilities, and smoke alarms. These regulations ensure that tenants enjoy the same rights and protections as those living in traditional homes.
For more information on rental laws, visit Consumer Affairs Victoria.
Where Can You Build a Small Second Home?
Small second homes can now be built on most properties in residential and rural zones across Victoria without a planning permit, provided the land meets the following requirements:
- The site is not subject to flooding or environmental controls.
- The property complies with siting, design, and amenity regulations set by the local planning scheme.
Permits and Approvals
Although a planning permit is not required in most cases, you will still need a building permit. This ensures that the dwelling meets all safety and design standards outlined in the Building Regulations 2018.
For detailed guidance, refer to the Small Second Dwellings Applicants Guide (PDF, 2.6 MB), available on the Victorian Government’s website.
Differences Between Small Second Homes and Dependent Person’s Units
While small second homes and dependent person’s units share some similarities, they are governed by different rules. Here’s how they differ:
Small Second Homes
- Size: Must not exceed 60 square meters.
- Purpose: A permanent, self-contained residence with kitchen, bathroom, and toilet.
- Flexibility: Can be rented out to anyone, including non-family members.
- Permits: Building permit required, but no planning permit in most cases.
Dependent Person’s Units
- Structure: A movable building designed to house a dependent relative of the primary resident.
- Restrictions: Limited to providing accommodation for a dependent person.
- Permit Rules: Transitional arrangements for dependent person’s units will expire on 28 March 2025, after which they may no longer be approved under the old regulations.
Property owners may choose to convert a dependent person’s unit into a small second home if it meets all the necessary requirements.
Steps to Build a Small Second Home in Victoria
If you’re considering building a small second home, follow these steps to ensure a smooth process:
Step 1: Assess Your Land
Check whether your property is eligible for a small second home by consulting with your local council. Ensure the site is not affected by zoning restrictions, overlays, or other planning controls.
Step 2: Apply for a Building Permit
Work with a qualified builder or architect to design your dwelling and obtain the necessary building permits. Ensure your design complies with all siting, safety, and amenity requirements.
Step 3: Consider Financing Options
Evaluate the costs associated with construction and permits. If needed, seek financing options to fund your project.
Step 4: Begin Construction
Once your permits are approved, construction can begin. Collaborate with experienced builders to ensure the project meets timelines and quality standards.
Step 5: Enjoy the Benefits
Upon completion, your small second home can be rented out, used as a guest house, or provide accommodation for family members.
Advantages of Building a Small Second Home
Small second homes are not just a practical solution for increasing housing supply—they also offer a range of benefits for property owners and investors:
- Rental Income: Earn passive income by renting out the dwelling.
- Increased Property Value: Boost the market appeal of your property.
- Flexible Living Arrangements: Accommodate aging parents, adult children, or extended family.
- Affordable Housing Option: Cost-effective compared to building a new home.
- Sustainable Land Use: Maximize your land without contributing to urban sprawl.
Impact of the Changes on Property Investors and Buyers
For property buyers and investors, these reforms open up new opportunities to generate rental income and increase property value. With demand for flexible housing options on the rise, small second homes are poised to become a highly desirable feature in the Victorian real estate market.
Conclusion
The Victorian Government’s reforms make building small second homes easier, faster, and more accessible. Whether you’re a homeowner seeking to maximize your property’s potential or an investor looking for new opportunities, small second homes offer a versatile, affordable, and future-proof housing solution.
For more information on building small second homes in Victoria, consult the resources below:
References
Ready to enhance your property? Contact Property Buyer Australia today to explore how small second homes can transform your real estate portfolio!
