Last Wednesday 6 May 2026, Parliament introduced the Building (Approvals and Practitioners) Bill 2026 (NSW) (the Bill), proposing changes to how building work is approved, delivered and regulated across New South Wales. As introduced, the Bill establishes a new legislative framework, with many of its practical consequences to be determined through regulations that are yet to be released.

The introduction of the Bill occurs in the context of ongoing housing supply constraints, growing institutional capital in alternative residential asset classes and increased reliance on repeatable and prefabricated construction methods. For the land lease community (LLC) and manufactured housing sector, these dynamics have sharpened long standing questions about whether existing planning, approvals and building controls are appropriately aligned with how these projects are delivered in practice.

The Bill provides an indication of the policy direction government may seek to pursue in response to those challenges, although its implications for the sector will depend on how the legislative architecture is ultimately implemented and how the accompanying regulations operate in practice.

A framework that reflects how LLCs are built

LLCs are fundamentally different from traditional master planned communities or green/brownfield subdivision projects. They rely on standardised or repeatable dwelling designs, prefabricated or modular construction methods and staged delivery across larger single title sites, with community facilities.

Historically, while local government certification pathways for LLCs have generally been workable, greater difficulty has arisen at the permissibility stage. In particular, uncertainty around how repeatable designs, prefabricated construction and staged delivery models are treated under planning and building controls has contributed to complexity earlier in the approvals process.

The Bill proposes a revised framework for approving and overseeing building work, including mechanisms intended to support compliance with the National Construction Code, and restructures aspects of NSW’s housing approvals systems. The Bill also forms part of a broader package of amendments across multiple statutes which government has indicated are intended to address issues relating to construction standards and regulatory oversight.

A notable aspect of the Bill is its formal recognition of Modern Methods of Construction (MMC), including prefabricated and modular housing. By defining prefabricated buildings in legislation and embedding MMC within the approvals framework, the reforms remove one of the sector’s most persistent barriers to scale: regulatory uncertainty. For LLC developers and operators already reliant on factory built or ‘slab on ground’ construction methodologies, the Bill proposes a clearer statutory framework including approvals and certifications.

The Bill proposes a more digital approvals environment, including the concept of a single, consolidated source of project information. For operators managing multiple communities, this raises questions about whether such a system could, if implemented as intended, support greater consistency across approvals and more efficient management of minor variations when deploying repeat housing products. The extent to which this approach supports more programmatic land lease delivery models, or aligns with portfolio scale development practices, will ultimately depend on how coherently these concepts are translated into the supporting regulations.

Looking ahead

While the Bill sets the legislative architecture, there is remaining uncertainty due to the scope of matters which may be addressed through regulations that are yet to be released. Those regulations will be central to understanding how the framework will operate in practice.

HWLE Lawyers are recognised as holding market leading expertise, having advised on LLC and manufactured housing projects since 2013, including across policy reform, project structuring and have acted for some of the largest LLC developments throughout the eastern seaboard.

Operators, developers and investors wishing to understand how the reforms may affect their LLC projects, construction methodologies or commercial arrangements can contact our team below.

This article was written by Kendra McKay, Partner, and Lauren Fairchild, Solicitor, with input from Colin Harris, Partner, Danielle Le Breton, Partner.