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Boarding Houses and Co-living

With the introduction of the State Environmental Planning Policy (Housing) 2021, boarding houses have been redefined and co-living housing has been introduced as a residential land use.

Boarding houses and co-living housing are similar in terms of their built form and operation. Boarding houses are a type of affordable housing which must now be managed by registered community housing providers, Aboriginal Housing Office or the Land and Housing Corporation.

Co-living housing provides a compact, ready to occupy form of accommodation for a range of people including young professionals and key workers.

The definition of each use are as follows:

Boarding house means a building or place:

that provides residents with a principal place of residence for at least 3 months, and
that contains shared facilities, such as a communal living room, bathroom, kitchen or laundry, and
that contains rooms, some or all of which may have private kitchen and bathroom facilities, and
used to provide affordable housing, and
if not carried out by or on behalf of the Land and Housing Corporation—managed by a registered community housing provider, but does not include backpackers’ accommodation, co-living housing, a group home, hotel or motel accommodation, seniors housing or a serviced apartment.

Co-living housing means a building or place that—

has at least 6 private rooms, some or all of which may have private kitchen and bathroom facilities, and
provides occupants with a principal place of residence for at least 3 months, and
has shared facilities, such as a communal living room, bathroom, kitchen or laundry, maintained by a managing agent, who provides management services 24 hours a day, but does not include backpackers’ accommodation, a boarding house, a group home, hotel or motel accommodation, seniors housing or a serviced apartment.

Note: Co-living housing is a type of residential accommodation

NSW Department of Planning and Environment, Housing SEPP provides additional details on Boarding houses and Co-living housing.

Typically, other terms used for communal housing, such as 'share housing' or 'student housing', are not legally defined as planning uses. They will commonly fall under the categories of co-living or boarding house.

Boarding House Development Information

Boarding house development is assessed under the State Environmental Planning Policy (Housing) 2021 (Housing SEPP) and is classed as affordable housing, meaning that it is housing that is made available to very low, low and moderate income households, or a combination of these.

The Housing SEPP further differentiates between boarding houses supplied by or on behalf of the Aboriginal Housing Office and Land and Housing Corporation or those managed by a registered community housing provider.

Does a Boarding House require development consent?

Development consent is required for a new boarding house (including the conversion of an existing dwelling/building to a boarding house) or alterations and additions to an existing approved boarding house.

However, boarding houses carried out on land within the R2 Low Density Residential zone must have all or part of the boarding house within 800m walking distance of land in Zone E1 Local Centre or Zone MU1 Mixed Use.

Boarding house development carried out by or on behalf of the Land and Housing Corporation is permitted without development consent if the development complies with Section 29 of the Housing SEPP.

Where are Boarding Houses permitted in the Newcastle Local Government Area?

A boarding house is permitted with consent in the following zones as per the State Environmental Planning Policy (Housing) 2021:

R2 – Low Density Residential
R3 – Medium Density Residential
R4 – High Density Residential
E1 – Local Centre
MU1 – Mixed Use

Planning controls relating to Boarding Houses

The development will need to comply with the following Planning controls:

Newcastle Local Environmental Plan 2012
Newcastle Development Control Plan (DCP)
State Environmental Planning Policy (Housing) 2021 Chapter 2, Part 2, Division 2
State Environmental Planning Policy (Housing) 2021 Chapter 2, Part 2, Division 3 Boarding houses – Aboriginal Housing Office and Land and Housing Corporation
Local Government (general) Regulations 2021, Schedule 2, Part 1, Standards for places of shared accommodation. The regulations provide information for shared accommodation that Councils can enforce by orders, it is not required to be addressed with lodgement of a development application.
Building Code of Australia (BCA)requirements, National Construction Code, (please note that registration is required for free access)
NSW Fair Trading – Registrable boarding houses

Co-living House Development Information

Co-living housing is typically built in highly connected areas, where residents have convenient access to work, study, and recreation opportunities. It often appeals to young professionals and key workers but can attract a wide variety of people from diverse demographics. Some key features include:

Small private rooms, complemented by shared indoor and outdoor spaces which encourage residents to come together to relax and socialise,
Private and shared spaces that are fully furnished and ready-to-occupy, and
A sense of community that is often actively encouraged by a manager, who is responsible for managing shared spaces.

Co-living housing may also be used as off-campus student accommodation.

Does co-living housing require development consent?

Yes, development consent is required for co-living housing.

Where is co-living housing permitted in the Newcastle Local Government Area?

Co-living housing is permitted on land which is zoned to permit development for the purposes of co-living housing, residential flat buildings or shop top housing within the Newcastle Local Environmental Plan 2012:

R2 – Low Density Residential
R3 – Medium Density Residential
R4 – High Density Residential
E1 – Local Centre
E2 – Commercial Centre
MU1 – Mixed Use

Planning controls relating to Co-living housing

The development will need to comply with the following Planning controls:

Newcastle Local Environmental Plan 2012
Newcastle Development Control Plan (DCP), such as Section D3 Residential Development
State Environmental Planning Policy (Housing) 2021 Chapter 3, Part 3, Co-living housing
Local Government (general) Regulations 2021, Schedule 2, Part 1, Standards for places of shared accommodation. The regulations provide information for shared accommodation that Councils can enforce by orders, it is not required to be addressed with lodgement of a development application.
Building Code of Australia (BCA)requirements, National Construction Code, (please note that registration is required for free access).

What about co-living dwellings with five rooms or less? 

Given the State Government definition of co-living in Newcastle Local Environmental Plan 2012, developments that sublet rooms, but have five or fewer rooms, would typically be classified as dwelling houses (subject to nature and length of tenancy). Such establishments must follow the regulations stated in Section D2 for single dwellings and ancillary development of CN DCP. They will not be considered as co-living housing. 

City of Newcastle acknowledges that we operate on the grounds of the traditional country of the Awabakal and Worimi peoples.
We recognise and respect their cultural heritage, beliefs and continuing relationship with the land, and that they are the proud survivors of more than two hundred years of dispossession.
CN reiterates its commitment to address disadvantages and attain justice for Aboriginal and Torres Strait Islander peoples of this community.