A local housing strategy is a document prepared by a council which addresses the strategic planning issues relating to the future housing needs of a local government area.

Penrith City’s latest LHS has been prepared to build on recent government plans and investments for our City, and provide a strategic approach to managing housing and population growth.

Yes, all metropolitan councils and some regional councils were required to prepare a local housing strategy under the State Government’s regional and district plans.

Yes, the Department of Planning and Environment (DPE) approve local housing strategies. In July 2021, DPE provided approval of Penrith City Council’s draft LHS - being the earlier draft version that was exhibited in 2019. A requirement of that approval is that the revised version of the LHS also be submitted for approval.

The objectives of the public exhibition are aligned to the International Association for Public Participation (IAP2) Spectrum and the principles endorsed in the Penrith Community Engagement Strategy and Community Participation Plan to:  

Inform: Provide clear and timely information to the community about the draft LHS before being considered by the Elected Council.

Consult: Facilitate meaningful and genuine opportunities to listen and understand community views, needs and ideas about housing in Penrith City prior to the finalisation of the LHS.

Involve: Enable access to a broad range of people within the community to ensure the views represented are as inclusive as possible.

The first requirement of the DPE’s Approval Letter states that Council submit its revised Local Housing Strategy to the DPE by the end of the 2021/2022 financial year. An extension was granted by DPE to allow submission in September 2022.

Councils are to make their local housing strategy available to the public on their websites. The strategy is also available on the NSW Planning Portal’s Local Housing Strategy Tracker page.

The LHS sets out a framework for housing delivery in Penrith City. Key elements of this framework include:

• Continued housing growth in and around the established centres of the East-West Economic Corridor, being Penrith, Kingswood, Werrington and St Marys.
• The establishment of new housing in and around the emerging centres with stations on the Sydney Metro Western Sydney Airport line.
• Planning and longer-term redevelopment of identified Urban Investigation Areas.
• Promoting resilient, affordable, sustainable, high-quality centres and neighbourhoods that contribute to the wellbeing of our residents.
• Promoting a diverse mix of housing types that offer choice and cater to all segments of our community.
• Exploring initiatives for the delivery of affordable housing to accommodate local workers and those in low to moderate income groups.

An earlier draft of the Local Housing Strategy was exhibited with the Local Strategic Planning Statement (LSPS) in late 2019. A number of factors made it difficult for Council to finalise the Strategy, including:

• The locations of Sydney Metro Western Sydney Airport stations having not been announced until June 2020.
• The release of substantially higher population projections for Penrith LGA by the State Government in December 2019.
• Additional requirements were stipulated by the State Government for Council’s Local Housing Strategy in the LSPS Letter of Support (March 2020) and more recently in the LHS Approval Letter (July 2021).
• The COVID-19 pandemic which has impacted dwelling completions and development, migration, and population forecasts generally.
• Evidence based on the 2016 Census may well be unreliable and out-of-date, while the findings of the 2021 Census began to be released from May 2022.
• Continuing development of plans by the State Government for critical precincts such as the Aerotropolis and the Greater Penrith to Eastern Creek Investigation Area (GPEC) (particularly The Quarter and Orchard Hills).
• Unresolved issues around flooding and flood evacuation by the State Government.

Notwithstanding, the latest revision of the LHS incorporates the most up-to-date information available and attempts to account for changes in population and development completions as a result of the COVID-19 pandemic.

Council’s Local Strategic Planning Statement sets out the 20-year vision for land-use in our local government area, the special characteristics which contribute to local identity, shared community values to be maintained and enhanced, and how growth and change will be managed into the future. The LSPS is succinct and focuses on the vision and priorities for land use in the local area.

The LSPS covers a range of land use considerations and has a broader focus than the Local Housing Strategy, which details long-term plans specifically for housing.

The Local Strategic Planning Statement provides a clear line of sight from the regional and district plans released by the DPE or Greater Sydney Commission, to Council's Local Housing Strategy, and its controls featured in the local environmental plans and the development control plans.

The biggest demographic shock from COVID is to net overseas migration (NOM). NOM is the primary driver of population growth in Australia, and that tap has effectively been turned off for 18 months and counting. Migrants are generally of family forming age, and so this has reverberations into the future because there will be fewer family-forming households and less children in the population.

The biggest long-term impacts will be felt in the inner city, and in growth areas that traditionally attract young migrant families, seeking affordable housing. Penrith City will be impacted, although perhaps not as much as other LGAs in the west, as we tend to have fewer people born overseas.

The type of impact that ID Consulting has highlighted for growth area councils will be typically:

• Short-term increase in residential construction due to pent-up demand and Government stimulus.
• Lower residential development in the medium-longer term due to the high impact of changes to overseas migration (growth corridors are often home to overseas migrants looking for affordable housing).
• Larger household sizes in established areas as younger people delay moving out or move back in with their parents due to economic vulnerability/access to jobs.
• Moderate impact of changes to births (twofold: declining fertility in times of economic/social uncertainty and fewer births due to flow on effects from international migration).

By 2036, the State Government projects that Penrith City will be home to around 253,970 residents, representing an increase of approximately 52,370 residents (26%) from 2016.

The Local Housing Strategy estimates a demand for 26,000 to 36,000 additional dwellings between 2016 and 2036. Around 8,000 of these dwellings have already been delivered as of mid-2021.

Yes. The Greater Sydney Commission (GSC) set a target in the District Plan. The target called for 6,600 additional dwellings by 2021. This target has been met already.

The GSC’s Letter of Support for the LSPS (issued March 2020) set another target. The target called for a 2021-2026 range of 7,500 to 10,000 additional dwellings. Our latest figures are predicting around 9,400 dwellings delivered in that period, so that target is on-track to be met.

Beyond 2026, no specific target has been set by the State Government. The DPE’s LHS Approval Letter (issued July 2021) requires that Council work with the DPE in confirming a 10+ year target (i.e 2026-2036).

The LHS discusses flooding as a significant constraint to residential development. Specifically, the document discusses the cap of 4,050 dwellings imposed on the Penrith City Centre. Conversely, Penrith City Centre may have capacity for around 12,600 dwellings by 2036 (or 14,050 dwellings in the longer term under the Adaptive Management Framework) if strategic work were completed and critical infrastructure delivered.

A requirement within DPE Approval Letter sets out that future iterations of the LHS and any supporting studies/investigations are required to give due regard to:

• Flood modelling undertaken by Infrastructure NSW’s Hawkesbury-Nepean Valley Flood Risk Management Directorate and any other information known at that stage
• If relevant, the Penrith City Centre Adaptive Management Framework, and
• The evacuation capacity limitations of the Hawkesbury-Nepean floodplain and new guidance which came into effect on 14 July 2021.

The approval requirement also states that Council should consult with DPE, Transport for NSW, NSW State Emergency Service and Infrastructure NSW in relation to flood evacuation capacity.

In 2021, Council’s General Manager wrote to the Secretary of the Department raising concerns regarding the lack of progress by the NSW Government in resolving the issue of flooding in Penrith and the Hawkesbury Nepean catchment. A further letter was sent to DPE advising that without critical flood information being provided by State Government, Council will find it difficult to address the abovementioned approval requirement in its revised LHS.

For general information about the Local Housing Strategy, please contact Council’s City Strategy team on 4732 7777 or email: citystrategy@penrith.city