The Australian Housing and Urban Research Institute (AHURI) has sought to increase its policy impact by transitioning from funding ‘policy relevant’ research to a ‘policy development’ research model. This model has been developed and implemented by AHURI over more than a decade in its role as an intermediary between the research and policy communities. The Policy Development Research Model (PDRM) integrates the traditionally separate processes of evidence-building and policy development into one set of practices. The cornerstones of the PDRM are; AHURI’s reputation as a trusted advisor, strong engagement with policy officials in setting the annual research agenda, the development of specialised research vehicles that ensure engagement throughout the conduct of research, academic expertise, the quality and rigour of research outputs, and proactive dissemination of research findings through a variety of channels. This article describes how the PDRM enhances policy impact by improving two-way knowledge transfer between academic researchers and policy-makers and practitioners. It offers an insight into how AHURI’s active role as an intermediary impacts on housing, homelessness and urban policy in Australia.