Rented tiny homes trial progresses with seniors in mind

A NSW South Coast council has placed its proposal on public exhibition.

Shellharbour City Council’s Tiny Homes Pilot Program is a proposed two-year trial to remove the need for a development application for mobile tiny homes used as rental accommodation in Shellharbour.

The model is not a new concept. In February, The Weekly SOURCE reported that the Shire of Capel in Western Australia’s southwest had approved a proposal for 40 tiny homes in the rural town of Boyanup, 180km south of Perth, assessing the development under caravan park planning provisions.

Mobile tiny homes are small, moveable dwellings built on trailers that can be registered as vehicles under the Road Transport Act 2013.

The proposed trial is intended to provide a more flexible, lower-cost housing option for local renters, while maintaining appropriate safety and planning controls.

To enable the trial, Shellharbour Council has prepared a planning proposal to amend its Local Environmental Plan. The change would allow mobile tiny homes to be installed on existing residential properties without a DA, subject to strict conditions.

These include minimum setbacks, connection to essential services, and compliance with fire safety and construction standards.

The exhibition follows the NSW Government issuing a Gateway Determination for the Tiny Homes Planning Proposal, allowing it to proceed to public consultation and further review, and signalling in-principle support.

The pilot has not yet been approved, and no tiny homes can be installed under the proposal at this stage.

The planning proposal and local approvals policy are on public exhibition from 9 April to 8 May 2026, with submissions open until 4:30pm on 22 May.

Council will review feedback after the exhibition period and report back for consideration. The pilot will only proceed if the proposed changes are formally adopted.