Inner West Council Housing Reforms 2025

From Bottleneck to Breakthrough: How Newtown is Reforming Housing in the Inner West

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In a decisive move to tackle the growing housing supply crisis, Inner West Council has endorsed sweeping planning reforms aimed at accelerating the delivery of new homes across Newtown and the broader Inner West. 

Spearheaded by Ashfield Ward Councillor Jess D’Arienzo, these measures mark a significant shift in how the council approaches housing development, moving from bureaucratic red tape to proactive facilitation.

Developing The Inner West Council's New Housing Reform Plans

Newtown, like much of Sydney’s Inner West, is grappling with soaring demand for housing, outpaced by sluggish planning processes and outdated frameworks. Councillor D’Arienzo’s reforms are a direct response to mounting frustration from the housing sector, with developers, renters, and community members alike citing an exhausting “game of bureaucratic pinball” when navigating the development application process.

“These are big reforms because we have a big problem,” said D’Arienzo. “The housing crisis is here now, and we’re taking action to accelerate the delivery of new homes. Our council is pulling all available levers to fix the supply crisis in our own backyard—especially in places like Newtown, where demand is acute.”

The reform package is built on three major pillars: the creation of a City Architect role, the establishment of a Significant Residential Development Panel, and the introduction of a Post-Development Application (DA) Survey to improve customer service.

At the heart of the reform agenda is the creation of a new City Architect role, tasked with guiding architectural and urban design initiatives across the Inner West. Set to be included in the 2025/26 Budget, the position will sit within the Planning Directorate and focus on ensuring developments are not only high-quality but also sustainable and reflective of Newtown’s unique character, where heritage charm meets vibrant modern life.

Key responsibilities will include: advising on the design of public spaces; collaborating with architects and planners; and setting design guidelines that balance innovation with preservation. Crucially, the City Architect will engage directly with the community, ensuring local voices help shape Newtown’s built environment.

Streamlining the Development Process

To further streamline the development pipeline, Council has also approved the formation of a new Residential Development Panel. Composed of senior council officials, including the General Manager, Director of Planning, General Counsel, and the City Architect (once recruited), the panel will assess major residential developments under the revised Inner West Local Environment Plan (LEP).

This panel will serve as a one-stop shop for the assessment of significant applications, with the aim of providing consistency, transparency, and speed in the decision-making process. 

By focusing on large-scale, high-value projects, the panel is expected to drive the timely delivery of much-needed housing stock, particularly in high-demand areas like Newtown, close to transport hubs and employment centres.

Understanding that planning reform must be responsive and accountable, the Council also voted to implement a Post-Development Application Survey. This initiative will collect feedback from applicants about their experience with the DA process, evaluating communication, decision-making transparency, and the overall quality and impact of approved developments.

Community Feedback

The survey will serve as an important feedback loop, identifying areas for improvement and helping to shape a more efficient, user-friendly planning system going forward.

These reforms come at a pivotal moment, with new rezonings on the horizon that will increase housing density around major transport hubs, including Newtown Station and along key corridors. By implementing these measures now, the Inner West Council is positioning itself to respond swiftly and effectively to future development pressures.

As Councillor D’Arienzo put it, “We’ve looked at best practice from other regions and crafted reforms that will not only address the housing crisis but also enhance the quality of our public spaces and urban design.”

In a region often defined by its passion for community and character, Newtown’s new direction reflects a bold commitment to meeting the housing needs of a growing population, while preserving the creativity and diversity that make the Inner West unique.