New Towns announcement
The New Towns Taskforce was set up in September 2024 with the aim of delivering new places and communities with unique identities and supporting infrastructure and amenities through strategic planning.
The Government’s response to its report was published yesterday (Sunday 28 September) alongside an announcement that it will now start work on progressing the next generation of new towns across England.
What are the key takeaways?
- The Taskforce explored different options for large-scale development, and recommends the delivery of a mixture of urban extensions, urban regeneration and standalone greenfield sites to contribute 300,000 homes across the schemes. Each new town should have at least 10,000 homes, with most expected to significantly exceed that, and a minimum of 40% affordable housing, half of which will be for social rent. The Government’s new New Towns Unit and Homes England are leading on next steps as part of a new delivery partnership. The Housing Minister will oversee this work, reporting directly to the Home and Economic Affairs (Infrastructure) Cabinet Committee.
- The Government’s preferred method of delivery is through development corporations, and they will be assessing delivery vehicle options on a case-by-case basis as part of the next steps. The focus is on the provision of long term certainty for communities in new towns which will involve public and private sector collaboration. The intention is that the corporations will be resourced to use CPO powers to assemble land as a priority. The ‘no-scheme principle’ of compensation for compulsory purchase will apply, so compensation will not include any land value generated by the new town scheme.
- The Government expects delivery bodies to use the power introduced by the Levelling-up and Regeneration Act 2023 to acquire land for new town development by compulsory purchase with a direction removing ‘hope value’ compensation, where affordable housing is to be provided by the development and the direction is justified in the public interest. If a ‘hope value’ direction is confirmed over any land required for a new town, the relevant landowners will not be compensated for any value associated with the prospect of a new planning permission being granted for that land. This includes any value associated with the prospect of a new planning permission being granted for speculative development.
- The Taskforce has also recommended that the Government considers the role of tax in housing delivery, and a working group will be set up with the Treasury to look at this. There will be separate guidance which is forthcoming on viability and land value considerations for new towns. The Government’s objective is to protect landowner return while minimising development cost in a fair way.
Where are the shortlisted new towns?
We have listed below the 12 proposed new towns identified by the Taskforce as being the front runners for unlocking economic growth, accelerating housing delivery, providing a strong community, creating environmentally resilient places and contributing to transforming the way large settlements are delivered. To support this intention, placemaking obligations are expected to be embedded in development agreements with developers.
The locations marked with asterisks are the schemes which the Government has identified as the most promising. The Government have also committed to getting spades in the ground on at least three of these schemes during this Parliament.
It is worth noting that a strategic environmental assessment will be undertaken to assess the environmental implications of development on each site, and the decision on the preferred locations will be dependent on that process. Appropriate assessment under the Habitats Regulations will also be undertaken when required.
The list of proposed new towns is as follows:
- A standalone settlement in Adlington, Cheshire East; to serve the growing industries in Greater Manchester and Cheshire, as identified in the Government’s Industrial Strategy.
- A corridor of connected development in South Gloucestershire, across Brabazon and the West Innovation Arc; building in one of the highest productivity areas in the country with a high value research, advanced engineering and technology economy. We have been advising on the planning and real estate elements of this strategic site since it was acquired by YTL Developments in 2016, so it would be remiss not to say we are rather excited about this site being short listed – it has incredible potential.
- An expanded development bringing together Chase Park and Crews Hill in Enfield; delivering green development and helping address London’s acute housing need. *
- Redevelopment of the former airbase at Heyford Park in Cherwell; connecting to Oxford and building on the existing progress and commitment to high-quality placemaking; referencing the area’s past and supporting its future in innovative technology industries.
- Urban development in Leeds; catalysing on the city’s existing economic prospects and capturing the benefits of the Government's £2.1 billion local transport funding allocation for the Combined Authority by delivering well-connected, high-quality homes in the South Bank to support the city centre. *
- Inner-city development and densification in Manchester, Victoria North; supporting continued growth and attracting high-skilled workers to service the city’s diverse industries.
- A standalone settlement in Marlcombe, East Devon; strengthening the region’s labour supply and supporting the Exeter and East Devon Enterprise Zone.
- A ‘Renewed Town’ in Milton Keynes; reinvigorating the city centre and expanding to the north and east whilst reshaping the way people travel, by delivering a Mass Rapid Transit system.
- Densified development in Plymouth; evolving Britain’s Ocean City and capitalising on the Government’s £4.4 billion investment in HMNB Devonport, Western Europe’s largest naval base.
- A new settlement in Tempsford, Central Bedfordshire; to maximise the benefits of East West Rail by building a well-connected new town in the heart of the Oxford-Cambridge Growth Corridor. *
- The creation of a riverside settlement in Thamesmead, Greenwich; unlocking inaccessible land in the city and improving connectivity if the proposed extension of the Docklands Light Railway can be delivered to enable the development.
- Expanded development at Worcestershire Parkway, Wychavon; accelerating delivery around the existing train station to help meet regional housing need and act as a model for sustainable, carbon neutral development.
What happens next?
The Government will publish the draft proposals and final SEA for consultation in Spring 2026, and then confirm the locations to be progressed and publish a full response to the Taskforce’s report.
Other pieces of the puzzle will be progressed in parallel, including the passage of the Planning and Infrastructure Bill through Parliament, confirmation of funding mechanisms such as the Social and Affordable Housing Programme, the National Housing Delivery Fund and additional capital funding managed by the National Housing Bank, and a consultation on revised national policies for plan-making and decision-making as part of the anticipated National Planning Policy Framework changes.
In the interim, the announcement confirms that affected local authorities should continue with plan-making, and approach applications in a positive and proactive manner. Decision-makers should however consider the impacts of other developments on the delivery of the short-listed locations for new towns. An interim planning policy approach has been proposed by the Taskforce, where the Government could call-in and refuse developments which “compromise the potential of new towns by blocking the opportunity for comprehensive planning as a result of speculation.”
We will keep you updated, and in the meantime if you have any queries on the consenting of new towns or large mixed-use residential-led schemes, please do not hesitate to contact me or my colleagues Gary Soloman or Sarah Sutherland.