Government Unveils Plan for 40,000 New Homes on Railway Land

In a bold move to address the UK's housing shortage and support first-time buyers, on 30 July 2025 the government announced a transformative plan to deliver up to 40,000 new homes on surplus railway land over the next decade. This initiative, part of the broader "Plan for Change" to build 1.5 million homes nationwide, aims to regenerate urban areas through transport-led development. 

Transport Secretary Heidi Alexander unveiled the plan, highlighting the role of the newly established property company, Platform4, in unlocking these brownfield sites and attracting private investment. Previously managed separately by London and Continental Railways Ltd and Network Rail’s Property Team, the creation of Platform4 aims to streamline development, attract private investment, and accelerate regeneration in key urban areas.

Sustainability and economic growth

Platform4’s approach is rooted in transport-led regeneration, placing railway stations at the heart of new neighbourhoods. This strategy not only supports sustainable travel but also reinforces the role of public transport infrastructure as a catalyst for economic growth and urban renewal.

The initial wave of development will focus on Manchester, Newcastle, Nottingham, and Cambridge, with flagship projects including 1,500 homes at Manchester Mayfield and 600 at Newcastle’s Forth Goods Yard. These developments will not only provide much-needed affordable housing for first-time buyers but also create vibrant, mixed-use communities with green spaces, shops, hotels, and improved transport links.

The £1 billion development programme is expected to generate £227 million in additional value through more efficient delivery and attract over £350 million in private sector investment. Thousands of new jobs will be created, both in construction and in the new communities that emerge around these developments.

Considerations for rail freight

However, an essential consideration is the effect these proposals may have on rail freight, which plays a crucial role in advancing net zero objectives and supporting economic growth. Rail freight underpins the Government’s housing delivery goals, so it is imperative to ensure that future developments do not inadvertently constrain its expansion by reducing land availability or restricting the function of established rail freight sites. It will be important for the Government to work closely with the rail freight industry to safeguard urban rail freight terminals whilst delivering the much-needed affordable homes envisaged by this programme.

This announcement signals a shift in how the UK uses its public land assets. By turning underused railway land into thriving communities, the government is not only addressing the housing crisis but also breathing new life into brownfield sites.

If you have questions around the use of railway brownfield land or how the developments will affect the rail freight sector, contact Burges Salmon’s expert rail team.

This article was written by Amy Simpson and Lydia Cullimore.