The Missing Middle Housing Reforms enable more homes to be built in established Canberra suburbs.
27 October 2026
In brief:
- The ACT Government has implemented the Missing Middle Housing Reforms.
- The reforms make it easier to build more low-rise medium density homes in established Canberra suburbs.
- The ACT Government has now opened expressions of interest for a national pattern book design competition.
- The pattern book will help lower costs and speed up the delivery of homes for Canberrans.
- The reforms are supported by a time-limited reduction in the lease variation charge for eligible missing middle development.
The ACT Government’s Missing Middle Housing Reforms commenced on 1 July 2026.
Through removing planning barriers, the reforms enable more low-rise, medium density homes to be built in established suburbs across Canberra.
Missing middle housing includes low‑rise homes such as:
- duplexes and triplexes
- terraces
- townhouses
- apartments up to two (RZ1) and three storeys (RZ2).
The Canberra House Pattern Book
The Canberra House Pattern Book will provide high-quality, pre-qualified missing middle housing designs.
The pattern book will be supported by a streamlined planning approval process. This means that once established, builders can start construction on new homes sooner.
The pattern book design competition
Pattern book designs will be selected through a national design competition.
The ACT Government has opened the expression of interest process as part of the competition.
Architects, building designers and architecture students across Australia can express their interest until 3 December 2026.
The competition is seeking innovative designs for:
- dual occupancies
- tri-occupancies
- townhouses
- terrace housing.
The pattern book initiative draws on successful programs underway around Australia.
Territory Plan changes now in place
The new Territory Plan changes began in July.
These allow missing middle housing to be built in Canberra’s established suburbs.
The changes are supported by:
- the new Missing Middle Housing Design Guide
- requirements to consider the character of Canberra’s suburbs.
Missing middle housing is now permitted in the RZ1 zone, with further opportunities opened in the RZ2 zones.
This brings more housing choice to most of the ACT’s residential land.
Housing options include low‑rise residential developments which can be:
- up to two storeys for RZ1
- up to three storeys for RZ2.
Changes to planning laws
The planning amendments help well‑designed, smaller‑scale projects move from concept to construction.
These changes make it easier to subdivide land and build new missing middle housing in more locations.
Lease Variation Charge reduction
Eligible missing middle housing developments are subject to a time‑limited 50% reduction in the Lease Variation Charge (LVC).
This lowers the cost of varying a Crown lease to allow additional dwellings in established residential areas.
The LVC reduction applies to eligible developments until June 2029.
It is intended to support construction activity through to 31 December 2030.
This aligns with the ACT Government’s commitment to enable 30,000 new homes by 2030, most to be delivered through infill development in established suburbs rather than greenfield expansion.
It also aligns with National Housing Accord targets.
You can read more on the ACT Government’s Planning website.
Read more like this:
- ACT Budget invests in housing access and affordability
- Expanding social and affordable housing in Canberra
- Stamp duty exemptions expanded in the ACT
Get ACT news and events delivered straight to your inbox, sign up to our email newsletter:
