What Does a Heritage Overlay Mean for Renovating a Home in Melbourne?
- Darren Naftal
- May 24
- 3 min read
Updated: May 26
“But what does it all mean?” I hear you cry. It’s nothing to be afraid of. I promise. Let me walk you through it.
What is a Heritage Overlay?
Heritage overlays, are controls set by local councils, designed to preserve houses of cultural or historical significance.
However, councils still understand the need to update and enhance these homes for modern living, these home just come with conditions - defined by the heritage overlay.
The primary difference between properties with and without heritage controls is simple: you can’t demolish the site entirely. The extent of what you must retain depends on the specific controls for your area.
Any renovation or addition to a heritage property can still happen, it just requires a planning permit, unlike most non-heritage sites. This simply means extra time and steps in order to make your changes.

Each council develops its own heritage controls, which means the specifics can vary. However, most councils follow a general framework that I’ll outline here.
Heritage overlays are categorised into levels of significance, which determine the extent of permissible alterations and additions. Let’s get into it:
All Heritage Overlays
The key consideration is what’s known as "streetscape" - ensuring that any changes are respectful of how the heritage home looks from the street, in particular the visibility of new additions.
For example, a towering three-story extension visible over the original roofline is a no-go, as it will over power the historical home.
I like these controls, they are about respecting our elders, by protecting the character of the old home, keeping it the "star of the show”. Councils use tools like "sight lines" to enforce this, requiring new additions to recede from the street and remain largely out of sight. Take a look at the drawing I prepared below.

This may limit how much you can expand, but it often works fine for properties with ample space at the rear or with modest renovation goals. With clever use of space, I have never had an issue working around this.
1) Significant Heritage Overlays
Homes deemed "Significant" require careful, case-by-case council assessment. These homes are integral to the area's cultural heritage, so controls are stricter.
The majority of the house must be preserved.
Exterior updates (due to wear and tear) must be "like for like."
Colours are often restricted to historically appropriate palettes.
Interiors? Typically, you have free rein.
It’s worth noting that people often confuse this with "Heritage Listed" properties, which are of state importance, and are protected by the National Trust. Those homes—marked by iconic plaques—and can’t be altered at all. However, these houses are extremely rare, sometimes functioning as museums, such as Como house in Melbourne.
There a typically two types of heritage overlays:
2) Contributory Heritage Overlays
"Contributory" houses are less significant individually but still contribute to the overall heritage character of the area. These are more common than those marked in a ‘Significant Overlay’.
Here, restrictions are more flexible:
The facade or a portion of it (e.g., front rooms) might need preservation.
Additions must still adhere to visibility rules from the street.
Councils are often more lenient with updates like replacing window frames or using modern colours, provided they don’t drastically alter the character.
In Conclusion
Heritage overlays are about protection, not prohibition. They’re designed to balance modern living with the preservation of our architectural history. With thoughtful planning and respect for heritage guidelines, these homes can be beautifully modernised to remain fit for living for another century.
If you want some advice on your home, or one you wish to purchase, get in touch, I'd love to have a chat.
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