Rebuilding on a Mr Fluffy Block in Canberra

Yes, you can build a new home on a remediated Mr Fluffy block in Canberra. The remediation is complete, the blocks are cleared, and the path to a new custom home on your land is well-established. If you have exercised or are considering your First Right of Refusal, this page explains what you need to know before starting the design and building process.

Rentoule Projects has the experience and ACT planning knowledge to guide you through a build on these blocks. We understand the deed conditions, the Crown Lease requirements, and the unique site characteristics that come with a remediated property.

What is a Mr Fluffy block?

Between 1968 and 1979, a company known as "Mr Fluffy" installed loose-fill asbestos insulation in the roof cavities of homes across Canberra and Queanbeyan. The insulation material was loose, fibrous chrysotile (white) and amosite (brown) asbestos, which over decades migrated throughout wall cavities and into living spaces.

The ACT government identified 1,021 affected homes across Canberra. Following years of debate about management options, the government made the decision that safe remediation was not possible within occupied structures. The Loose-Fill Asbestos Insulation Eradication Scheme was established to purchase all identified properties at full unaffected market value, demolish them, and remediate the land to a certified safe standard.

By 2017, demolition and remediation of all identified ACT properties was complete. The cleared blocks were then offered back to original owners under the First Right of Refusal provisions, or sold on the open market where that right was not exercised. Today, those blocks sit in established, well-connected suburbs across Canberra - cleared, certified, and ready to build on.

We recognise that for many families, this process was profoundly disruptive. Losing a family home, regardless of compensation, is a significant life event. If you are rebuilding on your original block or purchasing one of these sites, we approach the project with the seriousness it deserves.

The transparency Jeff provided regarding costs was invaluable. Thanks to their honesty and transparency, we faced no unpleasant financial surprises and at every point we had visibility and control over the cost.

Adam, Holder

The First Right of Refusal explained

As part of the eradication scheme, original Mr Fluffy home owners were given the First Right of Refusal to purchase back their cleared, remediated block at current market value after remediation was complete. This right was available to the original registered proprietors who participated in the buyback scheme.

Key conditions attached to the First Right of Refusal purchase include:

• Owner-occupier requirement. Purchasers must use the dwelling as their principal place of residence after construction is complete. This is not simply an intent requirement - it is written into the deed of agreement and is enforceable.
• 6-month occupancy rule. The owner-occupier condition typically requires 6 months of continuous occupation following settlement or completion of construction. Check your specific deed for the precise timeframe.
• No on-selling immediately after purchase. The conditions are designed to ensure these blocks return to owner-occupiers rather than becoming investment or speculative purchases. Review your deed carefully with a solicitor before committing to any plan that involves early sale or rental.

If you purchased a Mr Fluffy block on the open market after the original owner chose not to exercise their First Right of Refusal, these deed conditions do not apply to you. Standard ACT planning rules govern your build.

Special development considerations on Mr Fluffy blocks

One of the less widely known aspects of the Mr Fluffy eradication scheme is that some surrendered blocks carry development flexibility that would not otherwise apply under the standard RZ1 residential zoning rules.

Dual occupancy where otherwise prohibited

Standard RZ1 zoning in Canberra requires a minimum block size of 800 square metres for dual occupancy with unit titling. Some Mr Fluffy blocks that fall below this threshold may nonetheless be permitted to carry a dual occupancy under conditions established through the eradication scheme. This is not automatic or universal - it depends on your specific block, its Crown Lease, and the applicable planning instruments at the time of rebuild.

Unit titling possibilities

Where dual occupancy is permitted, unit titling allows each dwelling to be titled separately. This means the two dwellings on your block can be held, sold, or transferred independently. For some owners, this creates meaningful flexibility in how they use or eventually dispose of the property.

Development Application flexibility

ACT Planning has historically taken a considered approach to development applications on remediated Mr Fluffy blocks, recognising the particular circumstances of these sites. A pre-DA meeting with ACT Planning is strongly recommended before finalising any design that stretches standard planning parameters for your zone.

We advise you to confirm the specific conditions and permissions for your block with ACT Planning and a qualified solicitor before proceeding on the basis of any assumed flexibility. Conditions vary by block.

Designing a new home for a remediated block

Building on a Mr Fluffy block is in many respects a clean-slate project. The site has been cleared, tested, and certified. But that clear slate also means some familiar site features are gone.

The block is different from how you may remember it

Mature trees that were part of the landscape for decades may have been removed during remediation. Established gardens are gone. The visual character of the block is reset. This can feel disorienting - but it also means you are working with a genuinely open canvas.

Soil has been tested and certified

All remediated blocks have been subject to independent soil testing and received clearance certification. This removes one of the significant unknowns that can affect build costs on older Canberra blocks. You can proceed with slab design with confidence in the certified ground conditions rather than encountering expensive surprises mid-build.

Slab and foundation design

Because the block has been cleared to sub-grade level and certified, slab design can be optimised for the actual ground conditions without having to account for existing structures or buried services from the demolished dwelling. This is an advantage over some renovation or rebuild sites.

Orientation and solar access

Clearing the block gives your architect a clean opportunity to design for optimal solar access. Many of the original Mr Fluffy homes were built in an era with little attention to passive solar design. A new home on the same block can be oriented for north-facing living areas, effective cross-ventilation, and strong NatHERS energy ratings from the ground up.

Streetscape and neighbourhood character

Mr Fluffy suburbs are established communities. The new home should sit comfortably in the streetscape - not replicate 1960s architecture, but not jar against it either. We work with architects who understand Canberra's inner-suburb character and can design homes that are contemporary in function while respectful of their setting.

Working with the deed of agreement and Crown Lease conditions

Every Mr Fluffy block purchased under the First Right of Refusal scheme comes with a deed of agreement that records the conditions of sale. This deed sits alongside the Crown Lease in governing what you can and cannot do with your block. Before commencing any design work, you need to understand both documents.

Key things to confirm from these documents include:

• The owner-occupier conditions and their precise timeframe
• Any restrictions on the type or number of dwellings permitted
• Whether any specific design conditions were attached to the sale
• Whether the Crown Lease permits dual occupancy or secondary residences on your specific block
• The Lease Variation Charge position if you are considering adding an additional dwelling

We strongly recommend engaging a Canberra solicitor with experience in ACT land tenure and Crown Lease matters before committing to a design direction. Getting this right at the outset is far less expensive than discovering a problem after detailed plans have been drawn up.

From start to finish, the team was incredibly professional, efficient, and easy to communicate with. They truly listened to our vision and brought it to life, delivering exceptional craftsmanship and attention to detail.

Penny, Weetangera

Our approach to Mr Fluffy block builds

Jeff Rentoule has 19 years of residential building experience across Canberra. We have worked in the suburbs most heavily affected by the Mr Fluffy program: Holder, Duffy, Kambah, Curtin, Pearce, O'Connor, Lyneham, Ainslie and others. We know how these blocks were built, how they have been affected by the eradication process, and what a rebuild on a cleared block requires in terms of planning, documentation and construction.

Matt Ivanoff, our site manager, handles day-to-day on-site progress and is your primary contact during construction. Alex Edwards, our project coordinator, manages approvals, scheduling and client communication throughout. Jeff is directly involved in all contract-level decisions and available whenever a situation requires his attention.

We take this work seriously. Building on a site with this history is not like building on any other block in Canberra. We approach it accordingly.

We are tremendously grateful to Jeff and his team for transforming our house into a home. We wholeheartedly recommend Rentoule Projects to anyone seeking a seamless and professional home design experience.

Liz, Kambah

Suburbs commonly affected

Mr Fluffy insulation was installed in homes across many Canberra suburbs. The areas most heavily affected included:

Inner South and Woden: Curtin, Pearce, Garran, Hughes, Lyons

Inner North: Ainslie, Downer, O'Connor, Lyneham, Turner

Weston Creek: Holder, Duffy, Rivett, Weston, Chapman

Tuggeranong: Kambah, Macquarie, Theodore

Belconnen: Hawker, Scullin, Latham, Macgregor

If your block is in one of these suburbs, it is worth confirming whether it was part of the scheme - particularly if you are purchasing on the open market and the history of the block is not immediately clear. The ACT government's asbestos response website maintains records of affected properties.