A NSW Liberals and Nationals Government will restore the voice of local communities on how homes are delivered and targets met under a new Low and Mid Rise (LMR) Alternate Plan Pathway.

The announcement comes as the Minns Labor Government's flagship LMR policy continues to significantly underperform. The Government promised the policy would deliver 112,000 homes over five years, yet as of February 2026 only 4,900 homes had been approved under the scheme; just 22 per cent of where the policy should have been two years into its rollout.

Under the NSW Liberals and Nationals’ proposal, councils would be able to submit an alternate housing delivery plan that meets or exceeds their existing LMR housing allocation. Any proposal would be independently assessed and certified by the Department of Planning, Housing and Infrastructure.

In practice, this means:

• The same, or a greater, number of homes gets built, so housing targets are protected, not watered down.

• Councils that want to be part of the solution get a genuine, formal way to design better outcomes for their community rather than a rigid one-sized fit all approach of the current LMR

• If a council does nothing, the existing LMR settings simply continue to apply.

• Existing development applications already in the system are not affected.

Member for Manly, James Griffin MP said the Northern Beaches is already experiencing a surge in development proposals under the Minns Labor Government’s policy - many of which have proceeded without meaningful community consultation and leave Council with very limited discretion to amend or reject them.

“More homes are desperately needed on the Northern Beaches, but good planning means listening to local voices and ensuring existing transport and community infrastructure is there to support new growth.” Mr Griffin said.

"Local voices must play a role in planning where homes will be built in our community. Our alternate approach is about respecting local knowledge and listening to those who know the area best, while still delivering local housing targets,” Mr Griffin said.

“If a Council can demonstrate it can deliver the same number of homes, or more, through a plan that is better for their community, it should have the opportunity to do so.”

Liberal Candidate for Pittwater, Michael Gencher, said the Minns Labor Government has repeatedly shown that it’s prepared to ignore the needs of Northern Beaches communities.

“Pittwater is a clear example of why Chris Minns and Labor’s one size fits all approach does not work,” said Mr Gencher. “Drawing circles on a map is not a planning strategy – we need planning that is developed in consultation with our community and reflects the local needs.”

“Development should be based on essential components that make up a community, and the Liberal policy will empower our communities to make that happen.”

Liberal Candidate for Wakehurst, Phil Longley, welcomed the policy as one that will have a positive impact on the future of the Northern Beaches.

“I regularly hear local residents’ say that local concerns are being ignored, our policy will make sure that the community will have a say, while also helping to delivering housing that people need.”

Leader of the Opposition Kellie Sloane said the Liberals and Nationals support increasing housing supply, but the current one-size-fits-all approach has failed to deliver the homes NSW needs.

"We need to build more homes, but we also need to recognise that good planning isn't about applying the same template to every community," Ms Sloane said.