Five-year wait for much-needed housing in WA's holiday hotspot

Advocates say Margaret River tiny homes plan being held up by red tape Mon 20 Jul 2026 at 8:04am In short: A charity has submitted plans to build 11 prefabricated small houses for the homeless on disused land in Margaret River. The group says negotiations over land use have taken "years", while the town battles a critical housing shortage. The proposal is now being assessed by planning authorities. A housing charity trying to build prefabricated, small homes for the homeless in one of Western Australia's premier tourist towns says red tape has proven a significant obstacle. The development application for the long-vacant railway barracks area has finally been submitted after years of negotiations with the state government over use of the land. The project was initially proposed by the local Rotary club five years ago as a way to provide social housing on disused land for an increasing number of homeless people across the region. MyHome founder Michelle Blakeley said the ongoing process to secure the peppercorn lease of the crown land from the state government had been lengthy, despite broader community support for more social and alternative housing. "I think everyone from the shire president down would love to see more social housing in Margaret River, right through the South West and Great Southern," she said. "Because there's a high demand for holiday rentals, the [rents] in that area are very high, and a lot of people living in that area, even if they are employed, even as key workers, they just can't afford the rents in the area, because they are paying a premium." Ms Blakeley said the charity had already delivered 30 small social homes on leased vacant land in North Fremantle and Albany, and 24 homes in Carlisle. She said the process of obtaining land leases, checking, and securing government funding needed to be streamlined to ensure housing charities could help the homeless. "We really do have to jump through hoops in a very elongated red tape procedure," she said. "So that side of it is very frustrating, particularly when we get to winter,"she said. She said the Department of Planning indicated negotiations would have to take place with local Aboriginal corporation Karri Karrak. Karri Karrak chief executive Abby Phillis said while the land was initially intended to form part of the Noongar Land Estate, the corporation was broadly supportive of social and affordable housing being provided on the site. Shire of Augusta Margaret River chief executive Andrea Sevley said the project would now be assessed. "The shire has a long history of supporting initiatives that increase access to safe, secure, and affordable housing," she said. Process not to blame: government A state government spokesperson rejected suggestions its processes were behind the project's slow progress, saying MyHome had only re-engaged with planning officials this year. "MyHome advised that their own due diligence investigations concluded the site was not viable for a residential development," the spokesperson said. "The land is eligible for inclusion in the Noongar Land Estate; however, it has not been offered to Karri Karrak Aboriginal Corporation. "Its eligibility has not caused a delay." Should the project be approved, the spokesman said DPLH would consider appropriate tenure to facilitate the development. Tiny homes can struggle to find a space Ms Blakeley stressed the project could best be described as small social homes, as separate from mobile 'tiny homes', which are placed on a trailer and are privately owned. Both have been touted as ways to ease the housing crisis, but getting necessary approvals can prove frustrating. Earlier this year, the Shire of Capel gave a privately owned permanent tiny-homes-on-wheels community the green light, believed to be the first of its kind in Western Australia. In New South Wales, Shellharbour Council has approved a trial of new planning rules to allow tiny homes on residential lots without a development application. NSW tiny home builder Brenden Morrissey said people who had purchased tiny homes sometimes struggled with legislative requirements governing where they can be placed. "It's always a challenge," he said. "We've got one lady that her tiny home is here, ready, and she's living in South Australia and is still looking for her spot." Social housing provider Accordwest maintains a mix of housing types is needed to solve housing issues across Regional WA. Chief executive Danelle Milward said there was no singular solution. "We need a mix of social housing, affordable housing, crisis accommodation and innovative approaches, including modular housing and other models that can be delivered more quickly," she said. "There is no silver bullet to the housing crisis."