The state government has announced proposed changes that will allow residential flat buildings of 3-6 storeys, terraces, townhouses, duplexes and smaller 1-2 storey apartment blocks in suburbs where they are not currently allowed. Minister for Planning and Public Spaces Paul Scully said the changes would create capacity for industry to deliver up to an estimated 112,000 new homes across the Greater Sydney region, Hunter, Central Coast and Illawarra. This represented 30 per cent of the number of homes NSW needed to meet under its Housing Accord target of 377,000 new homes by 2029, he said. Mr Scully said, at present, each local council had its own rules for what kind of homes can be built in their area. "In October, the government identified a significant gap in the approval of density, with terraces and 1-2 storey unit blocks allowed under R2 zoning in only two of 32 Local Environmental Plans (LEPs) - that's just six per cent of the LEPs across Sydney. "R2 is a zone for land which is made up of low-density housing. "This 'missing middle' has meant that low rise density has been ignored in the face of a growing housing crisis. "Additionally, 60 per cent of R3 zones across Sydney (where multi dwelling housing is appropriate and should be encouraged) presently prohibit residential flat buildings of any scale." The proposed changes allow: Mr Scully said the government would amend a State Environmental Planning Policy (SEPP) to enact these changes while simultaneously encouraging councils to add these types of dwellings to their own planning rules. "If a local government's planning rules match - or go further than - this new NSW Government policy will not apply," he said. "The government has previously written to councils, asking them to review local policy settings to allow for more housing in low and medium density zones across their local government area. "National Housing Accord targets were set at the National Cabinet with all three levels of Government represented." The plans will go on public exhibition for public feedback from next week.