A manor house is a two storey building with three or four dwellings, at least one stacked above another, on a single lot. A terrace is a row of three or more attached dwellings that face and line up along a public road. Both are defined in the Standard Instrument LEP dictionary, both can be approved as complying development under the Low Rise Housing Diversity Code where the zone allows them, and since 28 February 2025 both are permissible in R2 zones within low and mid-rise housing areas near nominated town centres and stations across the Six Cities Region. They are the middle step between a dual occupancy and a block of townhouses, and they suit lots most investors already own.
Key takeaways
- Manor house and multi dwelling housing (terraces) are defined land use terms, so permissibility depends on whether the zone’s land use table or the Housing SEPP permits them.
- A manor house is limited to two storeys and three or four dwellings; a terrace is three or more attached dwellings addressing the street.
- Stage 2 of the Low and Mid-Rise Housing Policy made terraces and manor houses permissible in R2 zones within 800 metres walking distance of nominated centres, with non-refusal standards such as 500 square metres and 18 metres width for terraces.
- Complying development under the Low Rise Housing Diversity Code is available where the LEP or Housing SEPP permits the use with consent, subject to the Code’s lot size, width and design standards.
- Terraces attract a reduced non-refusal parking rate of 0.5 spaces per dwelling in low and mid-rise housing areas, which changes the feasibility of narrow sites.
The definitions, in plain terms
Manor house
The Standard Instrument defines a manor house as a residential flat building containing three or four dwellings, where each dwelling is attached to another by a common wall or floor, at least one dwelling is partly or wholly above another, and the building is no more than two storeys (not counting a basement). Think of a large two storey house with two flats downstairs and two upstairs, sharing one entry or two, with parking at the side or rear. Because it is technically a residential flat building, it is only permitted where the land use table, or the Housing SEPP, allows a manor house or residential flat buildings in that zone.
Terraces
Multi dwelling housing (terraces) is multi dwelling housing where all the dwellings are attached and face, and are generally aligned along, one or more public roads. Each home has its own front door to the street and its own ground level access. Three attached dwellings side by side on a single lot facing the street is a terrace. The same three homes each on their own Torrens lot are attached dwellings, a different term with its own permissibility.
Where they are permitted after the 2025 reforms
Before 2025, manor houses and terraces were generally only permitted in R3 Medium Density Residential zones, and in a few R2 zones where the council had chosen to list them. Stage 2 of the Low and Mid-Rise Housing Policy, in force from 28 February 2025, changed that for land in low and mid-rise housing areas, which are residential zones within 800 metres walking distance of a nominated town centre or a nominated train or light rail station in Greater Sydney, the Central Coast, the Lower Hunter and the Illawarra-Shoalhaven. In those areas the Housing SEPP makes terraces, townhouses and manor houses permissible with consent in R2 zones and applies non-discretionary standards that a council cannot use as a reason to refuse.
Outside those areas nothing changed. A manor house in an R2 street in Kellyville, Glenmore Park or Oran Park more than 800 metres from a nominated centre still depends on the council’s land use table, and in most cases it is not permitted there. The policy exclusions also remove heritage items, bushfire prone land, flood planning areas in nominated councils and the whole of the Hawkesbury, Blue Mountains, Wollondilly and Bathurst LGAs.
The numbers that make or break a site
Two sets of standards apply depending on the approval pathway. The DA standards below are the Housing SEPP non-refusal figures in low and mid-rise housing areas. The complying development standards are in the Low Rise Housing Diversity Code in the Codes SEPP and apply anywhere the use is permitted with consent.
| Control | Terraces, DA in a low and mid-rise housing area | Multi dwelling housing, DA in a low and mid-rise housing area | Complying development (Low Rise Housing Diversity Code) |
|---|---|---|---|
| Minimum lot size | 500 square metres | 600 square metres | Check the Code, generally 600 square metres for manor houses and terraces |
| Minimum lot width | 18 metres | Not specified as a non-refusal standard | Check the Code, wider for terraces than for manor houses |
| Maximum height | 9.5 metres | 9.5 metres | Two storeys, height per the Code |
| Maximum FSR | 0.7:1 | 0.7:1 | Set by lot size bands in the Code |
| Parking | 0.5 spaces per dwelling | Council DCP rate applies | At least 1 space per dwelling |
Where a council LEP already allows more, the more generous figure applies. Confirm every figure against the current legislation and the Code before running a feasibility.
Why investors like manor houses
A manor house puts four rental dwellings on a lot that might otherwise hold a dual occupancy, without a lift, a basement or the fire engineering of a larger residential flat building. On a wide corner lot or a lot with rear lane access, which is what the Code and most DCPs prefer, four two bedroom flats can be built within a two storey envelope that looks like a large house from the street. The catches are:
- It is a residential flat building, so the NCC 2022 Class 2 requirements apply, including fire separation between dwellings and sound insulation.
- Parking for four dwellings has to fit without a garage door wall across the frontage, which is why corner and laneway sites work and mid block sites often do not.
- Deep soil and communal open space expectations are higher than for a dual occupancy.
- Strata subdivision is the only exit for stacked dwellings.
Why small developers like terraces
Terraces are the most street friendly way to put three or four homes on an 18 to 25 metre wide lot. Each has its own front door and courtyard, buyers understand them, and Torrens subdivision is often possible where the LEP lot size permits it, which converts a terrace row into attached dwellings on separate titles. The 0.5 space per dwelling non-refusal rate in low and mid-rise housing areas is significant: on a four dwelling row, two spaces instead of eight can be the difference between a workable rear garage and no scheme at all. Sites in Parramatta, Granville, Bankstown and Wollongong within the mapped areas are where we see this most often. The low rise housing diversity design guides set out the layout principles that councils and certifiers expect.
Complying development under the Code is fast where every standard fits and the land is not excluded; a DA is the route for constrained sites and designs that need a variation. Our DA or CDC pathway advice settles this before drawings are commissioned.
Frequently asked questions
What is a manor house in NSW planning?
A manor house is a two storey residential flat building with three or four dwellings, at least one of them above another, on one lot. It is defined in the Standard Instrument LEP dictionary and can be approved by DA where permitted, or by complying development under the Low Rise Housing Diversity Code.
Can I build terraces in an R2 zone in Sydney?
Yes, if the site is in a low and mid-rise housing area within 800 metres walking distance of a nominated town centre or station, and is not excluded land. Outside those areas terraces are only permitted in R2 where the council’s LEP lists multi dwelling housing (terraces) as permitted with consent.
How many car spaces do terraces need?
In a low and mid-rise housing area the Housing SEPP non-refusal standard is 0.5 spaces per dwelling. Under the Low Rise Housing Diversity Code for complying development it is at least one space per dwelling, and outside the mapped areas a DA follows the council DCP rate.
Can a manor house be Torrens title subdivided?
No. Because at least one dwelling sits above another, the dwellings cannot be separated onto their own land parcels. Strata subdivision is the normal way to sell or hold the four dwellings separately.
URBA prepares feasibility checks, pathway advice and the Statement of Environmental Effects for manor houses and terraces as part of our townhouse and multi-dwelling planning service in Sydney, the Central Coast, the Hunter and the Illawarra. If you own a lot near a town centre and want to know what it can hold, request a fee proposal and we will start with the map.