Draft Variation 350 proposes to change the definition and naming of "single-dwelling block" to "standard block".

The "single-dwelling block" definition, introduced into the plan in 2013, specifically applies to blocks that were originally leased or used for a single dwelling.

This meant it did not apply to a number of residential blocks developed in the late 1960s and early 1970s, when dual occupancies with a house and a small flat could be built on a single block provided only the house could be seen from the street.

According to the draft variation, residential leases for these blocks do not specify or limit the number of dwellings permitted.

"This has led to multi-unit redevelopment proposals being lodged with the planning and land authority that are contrary to the existing streetscape density and character," the draft variation says.

Minister for Planning and Land Management Mick Gentleman said the draft variation addressed the "unintended consequences" thrown up by the current wording, by adjusting the definition of these blocks so they included land originally leased or used for one or two dwellings.

“This adjustment to the Territory Plan will give the community and industry greater clarity and provide them with certainty when considering redevelopment of these particular blocks,” Mr Gentleman said.

“As Canberra progresses, so too does the need to constantly review and adjust the Territory Plan zoning to meet current planning and community expectations.”

The draft variation has already taken interim effect, and applies to development applications lodged on or after May 25.

It is being proposed as an interim solution until the Housing Choices Project, a broader policy review of the ACT's future housing options, has been completed next year.

Public submissions on the draft variation are open until July 13.