Chief Minister Andrew Barr's support for expanding rules to allow more dual occupancies on large blocks in established suburbs has been welcomed by a key industry group.
The Housing Industry Association said it was positive Mr Barr referred to the need to build "missing middle" housing to meet the needs of a growing ACT population.
Greg Weller, the association's ACT and southern NSW executive director, said the surrendered Mr Fluffy blocks over 700 square metres had already been developed as separately titled dual-occupancies with no adverse consequences.
"It was very positive to see the Chief Minister this week reference using the current planning reforms to address the 'missing middle' of affordable medium density housing, including expanding dual occupancy opportunities in our suburbs," Mr Weller said.
"This is a sensible and sustainable way to get more new homes into our city, and is potentially a means by which older Canberrans on larger blocks can plan to downsize without leaving their neighbourhood and networks."
But Mr Weller said it was unfortunate an actual proposal for dual occupancies had not been included in the planning reform documentation and had only been referenced on a consultation website.
"The ACT government has long held the policy of building 70 per cent of new homes in the existing footprint of Canberra, it needs to now back that up with a planning system that supports the delivery of more housing," Mr Weller said.
Mr Barr on Thursday said expanding the dual occupancy rules which allowed blocks cleared as part of the Mr Fluffy asbestos insulation buy-back program to be redeveloped would help deliver smaller, more affordable homes in established areas.
"There's a way to do this that would address legitimate concerns about neighbourhoods changing dramatically, but at the same time offer more product and a house size that's 100 to 150 square metres, so equivalent to a three-bedroom apartment probably, but at a single level, in a gentle transformation of some of the larger blocks in places where people want to live," Mr Barr said.
Mr Barr said reform of the ACT's planning system and updating zoning rules will be necessary to deliver more homes in a compact city.
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