State government changes to the planning rules around townhouses and other low-rise developments will turbo charge construction of new housing stock says KR Peters Director Peter Nicolls.

The state government announced this month that it is updating Victoria’s residential planning rules to make it faster and easier to build more 'liveable and sustainable' medium density homes.

Two new sets of planning rules, the ‘Townhouse and Low-Rise Code’ and the ‘4 Storey Apartment Standards’ will determine development standards like setback requirements, bedroom size, access to sunlight and tree coverage.

According to the government, neighbours will be protected from overshadowing and onlooking, and will benefit from new requirements to include trees on properties.

The new Code will allow faster permits and greater certainty for townhouses and apartment buildings up to three-storeys, so long as they meet the new standards.

There will be no right of appeal process for planning applications that are 'deemed to comply' to the new standards.

Mr Nicolls welcomed the announcement, likening the effect on the building industry of the changes to a "bullet train".

"The speed that permits will be issued in Victoria for new homes up to three-storeys high will be revolutionary. You will blink and homes will be going up everywhere," he said.

"The changes will fast track the existing process which has basically come off the rails. It will remove all the red tape and developers will save money. As time adds additional cost to every project it will enable to developments to be completed faster."

The government says it will now work closely with councils and industry bodies to ensure clarity and understanding around the new and updated Code and standards.