NSW Government tells Maitland council to allow more mid-rise apartment blocks, townhouses in existing suburbs

NSW Planning and Public Spaces Minister Paul Scully has urged Maitland council to amend its Local Environment Plan (LEP) and Development Control Plan (DCP) to encourage this type of infill development in suburbs where there is existing services and infrastructure.

Mr Scully said 377,000 homes had to be built across NSW by 2029 to help meet the demand.

In a letter to Maitland Mayor Philip Penfold, he called on the council to "identify existing well-located areas where terraces, small unit blocks or well-designed mid-rise apartments can be permitted."

"I am asking you to begin work identifying locations and permitting more low and mid-rise homes immediately," he said.

"The land use planning and assessment functions of councils and the department will need to quickly adjust towards approaches that lead to more homes in well-located areas."

Council's planning and environment group manager Matthew Prendergast said council staff were already working on a revised DCP and expected to release the first two chapters for feedback in the first quarter of next year.

He said a revised LEP would consider the new local housing strategy and rural lands strategy and be put before the council in the next few months.

Councillor Mike Yarrington said the updated plans must also consider the council's inaugural environmental sustainability strategy.

Deputy Mayor Mitchell Griffin said the council was already trying to fix the housing crisis.

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He pushed for this to be communicated in a letter to Minister Scully and Maitland MP Jenny Aitchison.

Cr Griffin said the council needed the state government to cough up between $50 million and $100 million to pay for road infrastructure so it could release more land for development.

He said large-scale infrastructure was needed in growing suburbs like Thornton and Lochinvar so more lots could be released.

Cr Baker reminded him Minister Scully was pushing council's in a different direction.

She said Minister Scully was focusing on development that was close to existing services and infrastructure.

She agreed the council should focus on infill development to address the housing crisis and noted a diverse range of options were needed to accommodate the city's young people.

Cr Griffin said Maitland had already been pulling its weight as the fastest growing area outside of Sydney. "I do appreciate where the minister is coming from," he said.

"The lack of infrastructure is our biggest hold up at the moment ... We've said it again and again and we continue to get ignored."