A NSW Land and Environment Court rejected a developer’s attempt to convert a boarding house in Paddington into four luxury apartments, citing concerns over the loss of affordable housing and social impact.

The court ruled that demolishing the Selwyn Street boarding houses would cause an unacceptable loss of affordable rental accommodation, despite residents having been evicted earlier this year.

The boarding house on Selwyn Street, which housed 28 mostly elderly men, was evicted last October, prior to the court ruling, sparking community campaigns to preserve it.

Similarly, a proposal to turn 32 affordable boarding house units in Paddington into luxury homes was rejected due to the potential reduction in affordable housing stock.

Sydney's Lord Mayor, Clover Moore, expressed disappointment that the eviction of a boarding house occurred before the court's decision and called for legislative changes to better protect affordable housing, emphasizing the need to prevent significant loss of homes through development.

Moore hopes the recent court ruling will set a precedent to safeguard affordable housing from being replaced by private developments, highlighting the importance of increasing affordable options in Sydney.

A former resident, Jeff Elliot, who lived at Selwyn Street for 20 years, expressed relief at the court’s decision, noting the lack of alternative housing options for those evicted.

In December 2024, the NSW government offered to purchase part of Selwyn Street to maintain its affordable housing status, but the developers did not respond to the offer.

Greens councillor Sylvie Ellsmore highlighted the housing crisis and proposed converting existing boarding houses into public housing to address the shortage.

Although the building is privately owned and in disrepair, with issues like mold and plumbing problems, former residents like Elliot feel a strong emotional connection to their long-term homes.

The court’s judgment emphasized the cumulative impact of losing low-rental buildings on Sydney’s overall housing supply, urging careful consideration of each development application.

The court’s ruling supports the City of Sydney’s stance that retaining the building is essential to prevent a reduction in affordable rental options in the area.

This decision is viewed as a potential precedent to stop the trend of converting affordable housing into luxury residences, which is driven by higher profits for developers.