Claim your

Free 15-Min consult

And Uncover the Path to Saving $10,000’s on your granny flat build.

As Seen On ...

Penrith Granny Flat Rules – All You Need to Know

penrith nsw

If you reside in the Penrith City Council, NSW, and want to build a secondary dwelling – here is a summary of Penrith City Council granny flat requirements:


  • An extra car parking spot, though not always necessary, you may have to ensure you have enough land so there are enough car parks available for all tenants. 
  • You may have to pay a Development Contribution to Council, the cost which will be dependent on the overall cost of your granny flat, and be determined by your certifier.
  • Penrith City Council abides by the regulations in the State Environmental Planning Policy (SEPP), but land size restrictions vary depending on whether land is Residential or Rural. These can be seen in the Penrith Local Environmental Plan 2010, and approved through either a CDC or a DA.
  • Design regulations for granny flats can be seen in the Penrith Development Control Plan 2014, Part 2.3.


Today I will cover all of this, including in detail the land size restrictions. I will also discuss who your target demographic is, if looking to rent out your granny flat so you can get the best rent you can.


Is Off-Street Parking Needed at a Granny Flat in Penrith?


DON'T PAY A FORTUNE FOR YOUR GRANNY FLAT. Find out how to deal with council and build a granny flat for the lowest cost possible. Learn More.

The Penrith Development Control Plan 2014 states another space car parking should be considered at a granny flat.


This can be seen is Section 2.3.A (Secondary Dwelling Objectives):


car going into carpark

Car parking is strongly recommended with Penrith Council


f) “To ensure that secondary dwelling development does not compromise the provision of onsite car parking provided for an existing or new dwelling house on the lot.”


Meaning, you must ensure that when building a new dwelling you still have enough land space for car parking for both those in the main home, and those in the secondary dwelling.


This is not a bad thing, as car spaces can be valuable for your tenants. This is because if planning on renting out the granny flat, your rivals in the market may not include this, and so it’s something that can make your granny flat catch someone’s eye. I will discuss this further under the heading the “Demographic of Penrith, & Who Would Be Your Best Tenant”.


Are There Development Contributions that Must be Paid to Council?


Known as a Development Contributions Plan (also called a Local Infrastructure Contributions Plan), this allows the Council to fund new local infrastructure and services, as required when new dwellings are built.


If you will be required to make a contribution depends on how much your development costs. Your certifier will be in charge of making this decision. Or, you can contact the Council for advice.


Methods of payment can be seen at the Penrith City Council’s website.


Land Size Restrictions for a Granny Flat


You can be approved to build your granny flat through the Penrith City Council by either Complying Development (CDC) or a Development Application (DA).


You can now submit your DA’s through Penrith City Council’s Online Application System .This must meet the standards in all of the below:



Land Sizes


The SEPP states the minimum lot size for a granny flat is 450sqm in Residential Zones.


The LEP states that in Rural Zones, granny flats are permissible on land sizes greater than 2 hectares, and on lots less than 2ha in rural village zones. However, Council may consider approving your granny flat on a lot that is smaller than 2ha if you can demonstrate that the current on-site effluent disposal system is of adequate capacity for both dwellings.


The exception is Twins Creek, where secondary dwellings are not allowed.


Dwelling Sizes


Wherever the granny flat is built and regardless of land size, regulations state it typically cannot exceed 60sqm. However, leeway may be given for larger lot sizes, so I do suggest contacting the Council if you do wish to build something bigger, as you never know your luck.


Are You Able to Crane in a Modular Granny Flat?


If your choice of granny flat is prefabricated, such as a modular home, you must make preparations so it can be relocated to your site.


One very important task hiring a crane – this is necessary to unload the granny flat from the transport vehicle.


So, are you able to hire a crane in Penrith, and what’s a rough cost?


Yes – there are crane operators who are located in or around Penrith. The cost is variable though – it depends how easy your site is to access, so I advise you to get a minimum of 3 quotes. This should be easy – each company should come and assess your site, giving you a free quote.


Expect to pay roughly $250/hour for a smaller crane. But if you require a large crane as you have a property that’s harder to access – such as if you have cracked footpaths in the way of where the granny flat needs to be delivered – expect to pay roughly $400 or more per hour.


When calculated, just a crane itself can cost over $1500 – again why you should get multiple quotes.


Some companies to contact for a quote include:



Does Your Granny Flat Need to Match a Certain Design for the Suburb?


Specific design requirements for granny flats in Penrith can be seen in the Penrith Development Control Plan 2014.


Some points to take note of are:


Section 2.3 (Secondary Dwellings) notes the requirement to provide compatibility with the surrounding residential and existing built environment, and residential character.


The same goes for conversion of existing structures (i.e. garages) to secondary dwellings – these must be designed to a satisfactory level of appearance, resulting in a high quality of residential


2.3.3. Siting and Design notes that if converting an existing building, or part of an existing dwelling, into a secondary dwelling, it must be shown that the setbacks of the existing building, structure or garage have little impact on the scale and streetscape of the surrounding locality.


4) Notwithstanding any compliance with these setback controls, it must also be shown that the proposed building setbacks:

a) Maintain the established street character.


2.3.5 Design and Materials notes the below:


1) Secondary dwellings must complement and enhance the main home, by working with any positive characteristics found on site in terms of construction, façade design and materials.
2) Metal or corrugated iron materials should be avoided, except on roofs.
3) External building materials and their colours should be compatible with the character of the locality.


If you need assistance understanding these regulations, contact granny flat builders or town planners who have fantastic knowledge of the area, then please contact us and our team can help you out.


Demographic of Parramatta & Who Would be Your Best Tenant?


The 2016 Census showed 196,066 people living in Penrith (C). Of these 49.4% were male and 50.6% were female. The median age was 30-35 years.


Targeting the right demographic with your design will help with rental returns


In Penrith City, 23.4% of households earned an income of $2,500 or more per week, but the average income was $1658, and a mortgage $2000.


While 100,604 people who reported being employed the week before Census night in Penrith (C), the number of households where rent payments were 30% or more was only 11.9%.


At this stage there were only 233, or 0.4%, “other occupied private dwellings”, leaving plenty of room in the market for your granny flat to house a group household or even family, as the mortgage prices are so high, making it harder to achieve the goal of owning a family home.


So, if you have the room, a 3-bedroom granny flat can offer you great rental return.


For this demographic you can save money on furniture, as most people by 30-34 will have their own.


But be sure to include a carport or garage, as most will have cars and this certainly help with getting as much rent as possible. While on the topic of increasing rent, be sure to include air conditioning and a dishwasher as these are factors that tenants care about.


Also, make sure that you include separate gas, electricity, and water flow meters, so you can better control the costs and offer split billing.


All of these things will appeal to tenants, and attract a good rental income.




As per the SEPP, in Penrith you can be approved for a granny flat through Complying Development (CDC). But if your proposal doesn’t meet those for CDC, you can submit a Development Application, and be compliant with the LEP and the DCP.


Your minimum property size is 450sqm if in a Residential Zone, see the LEP for your area if in a Rural Zone. You are restricted to a 60sqm floor space ratio.


Your design must meet all elements of the Development Control Plan, so your building compliments your surrounding neighbourhood.


Your certifier will decide if you have to pay the Council a contribution for building your granny flat.


You can also check with Penrith City Council on: