Nine rooms under one roof: Ferntree Gully residents’ rooming house uproar ignites a broader planning push

Social housing accounts for only 2.88 percent of Victoria’s housing stock.

Matthew Sims
January 30, 2026

Victoria has the poorest delivery of social housing across the country, according to a new report from the Federal Government’s Productivity Commission.

In Knox, the local council has delayed a decision to make its own dent, pausing the approval of a rooming house in Ferntree Gully and pushing the State Government to take on more of the responsibility.

🏡 What is a rooming house? Also known as a boarding house, a rooming house is a dwelling where one or more rooms are for rent.

Due to lower individual cost than a unit or apartment, rooming houses provide housing opportunities to community members who can’t afford to rent privately.

📉 Bottom of the list: Released on Friday, the Federal Government’s Productivity Commission's Report on Government Services highlighted Victoria came last in terms of its proportion of social housing – 2.88 percent.

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A previous approval for 126 dwellings, granted by VCAT, has lapsed.

🗓️ Another fortnight to consider: Last June, Knox Council received a planning permit application for the construction of a rooming house at 6 Margot Street in Ferntree Gully, including nine bedrooms over a 299-square-metre dwelling.

The council received 44 objections to the application, with submitters airing a range of concerns, including fears the development would lead to an increase in the crime rate.

Knox councillors decided to defer the matter until the next council meeting on Monday February 9.

📣 Advocating for safer rules: On Tuesday, Knox councillor Lisa Cooper moved a motion to take a number of actions in light of issues raised by Ferntree Gully residents, including advocating to the State Government for improved standards and requiring planning permits to be required for all rooming houses under planning rules.

A larger slice of the pie: How much are low-income renters paying for a roof over their heads in the eastern suburbs?

A new report shows while rapid declines in Melbourne’s rental affordability have eased, levels remained at their lowest since 2012.

👷 Room for improvement: Councillor Cooper said the system was unsuitable for residents of the dwellings and their neighbours and there was an “imbalance” in responsibility between the state and local governments.

🗣️ “Rooming houses are a critical part of Victoria’s housing system, particularly at a time of significant housing stress,” said Cooper. “In practice, it’s local governments that deal with the impacts…often without the funding, authority or tools to manage this effectively.”