Exciting News: Major Update to DPU Rules in Victoria

Victoria homeowners, exciting news! This week, the Victorian Government announced a one-year extension to the current Dependent Person’s Unit (DPU) regulations, giving you a limited window to act before new restrictions reshape the future of secondary dwellings. 

This update allows you to move forward with your DPU project under the existing rules—but only until the 28th March 2026.

This is a huge opportunity for anyone considering a DPU project! DPUs provide an effective solution to the housing affordability crisis, offering a cost-efficient way to create additional living spaces without the need to buy a separate property. Once the extension expires, you'll be subject to the more restrictive Small Secondary Dwelling (SSD) rules, limiting your options significantly.

Read on to learn how this change can benefit you—and why now is the time to act...

What is a Dependent Person’s Unit (DPU)?

A DPU is movable building situated on the same lot as an existing dwelling. These units have been a popular choice for families looking to provide close, yet independent living spaces for elderly parents, teenagers, or other dependent family members.

• Who can live in a DPU? - They are specifically designed to accommodate a person dependent on a resident of the primary dwelling.

• What permits are required for a DPU? - Some DPU projects will require a planning permit and others will not, it's very specific to your site and council. We recommend speaking to a planning consultant and your local council for advice. A building permit is always required. 

What's Changing?

DPUs have been permitted under temporary planning provisions, which were set to be replaced by Small Secondary Dwellings (SSDs). The key difference between the two comes down to space and flexibility:

• DPUs – No fixed size limit, offering more space for comfortable, long-term living.

• SSDs – Capped at 60sqm in size, drastically limiting the living area and functionality.

The one-year extension is likely your last chance to build a DPU under the current, more flexible rules. Once the extension expires, SSDs will be the only option, and space will be significantly limited.

What This Means For You

If you’ve been considering a prefab modular home as a DPU, this extension is a great opportunity. Here's how you’ll benefit from acting now:

• More Space – Build a DPU with ample room to comfortably support your loved ones for years to come.

• Avoid new restrictions – Once the rules change, SSDs will have stricter size limits and additional regulatory requirements.

• Benefit from a streamlined process – Some councils don’t require planning permits for DPUs (location-dependent), which can speed up the approval process.

• Affordable Housing Solution – DPUs offer a practical answer to the housing affordability crisis, providing a more economical alternative to purchasing a separate property.

How Anchor Homes Can Help

As a leading modular home builder in Australia, Anchor Homes is perfectly positioned to help you take advantage of this extension and secure the DPU you need. Here’s why we’re the right choice:

1. Fast Build Times – Ideal for Beating the Deadline

With the DPU deadline fast approaching, time is critical. Modular homes are built faster than traditional homes, so we can get your DPU ready quickly—ensuring you can take full advantage of the current regulations before the new rules come into play.

2. Our Experience 

Celebrating our 20 year anniversary this year, our team has a wealth of of expertise in designing and delivering high-quality modular homes, including DPUs. Our in-house permits coordinator is incredibly familiar with council regulations and works directly with local authorities to ensure the process is as smooth and efficient as possible. This means fewer delays and a stress-free building journey for you.

3. Customisation & Flexibility

With Anchor Homes you have the flexibility to choose from our standard range of designs or opt for a fully custom design. Whether you need a two-bedroom or a spacious four-bedroom DPU, we’ll create the perfect home for your needs. 

4. Spacious, High Quality DPUs

Our two-bedroom DPUs typically start at a contract value of $300,000+, and feature designs from 75sqm upwards. These homes are built to last, offering premium quality, functional layouts, and an exceptional living experience. For a full breakdown of our base prices and design options, download our price list here.

Please note: If you’re looking to build a small secondary dwelling under 60sqm, our solutions may not be the best fit, but if you’re after spacious and stylish DPU, we are the team for you.

The Final Countdown – Act Now Before It’s Too Late

This one-year extension is your last chance to take advantage of the current DPU regulations. After 26th March 2026, homeowners will be limited to smaller, 60sqm SSDs with stricter planning requirements.

If you’re considering a modular DPU, now is the time to start your project. Contact our expert team today to discuss your options and secure your build before the deadline!