Hepburn Shire is grappling with a housing crisis that leaves hundreds without secure, affordable accommodation. Among the most vulnerable are older women—many of whom are living in vans, couch-surfing, or struggling in temporary housing.
Local not-for-profit group Safe Place Homes (SPH) has proposed a solution to tackle this issue head-on. The concept is simple but powerful. Landowners would install a small, second dwelling—no larger than 60 square metres—on their existing residential property. These compact homes would be designed with comfort, privacy, and aesthetics in mind, featuring timber cladding, natural finishes, and double-glazed windows. Each unit could be tailored to suit the site and integrate seamlessly with the main property.
Financially, the model is designed to minimise stress while delivering both social impact and personal benefit. The total cost of establishing a dwelling is expected to be around $150,000. Safe Place would manage funding arrangements, which may involve mortgages or land lease agreements. The tenant, selected from a community housing register, would pay affordable rent—capped at 30% of their pension plus Commonwealth Rent Assistance—typically enough to cover mortgage interest and utility costs. The landowner would commit to keeping the rent affordable for 10 years, after which the dwelling becomes theirs to use as they wish.
Safe Place Homes is seeking a local landowner to pilot their proposal. If the pilot is successful, SPH would extend the project to additional dwellings and apply their learning from the pilot project to speed delivery of additional housing.
Safe Place Homes was founded by Daylesford local David Hall in 2017 bringing together residents committed to positive change. This latest project responds directly to the unmet need for more than 300 affordable homes in the shire, as documented in the Hepburn Shire Housing Strategy.
The proposal comes at a time of significant regulatory change. Recent amendments to Victorian planning laws have streamlined approvals for small second dwellings. In most residential and rural living zones, these homes no longer require a planning permit, though they must meet basic siting requirements such as setbacks and height limits. Safe Place Homes would take on the complexities of planning, design, compliance, and installation, ensuring a smooth process for landowners.
Beyond the social good, there are clear financial incentives. Landowners can expect rental income between $200 and $350 per week. In some cases, this may exceed monthly mortgage repayments. Additional benefits may include access to council fee waivers, tax deductions, and housing grants.
Peter Duncan, a member of the Safe Place team, emphasises the dual opportunity. “This is about creating a win-win. You provide a home to someone in real need while adding a valuable asset to your property. And the best part—it’s achievable right now, with local support.”
Safe Place Homes invites residents interested in learning more to contact them for a no-obligation chat or a free site assessment. By leveraging unused backyard space, locals can help restore dignity and stability for some of the Shire’s most at-risk residents—while investing in their own future.
For more information about regulatory changes and requirements for small second dwellings, a brochure is available on the planning.vic.gov.au website.
For more information see the Safe Place Small Homes brochure on their website or contact Peter Duncan at peterjbduncan@gmail.com or 0417 576 393, or Mary-Faeth Chenery at mf@forthegoodofall.org or 0428 481 754.
