One of the new Government's manifesto pledges is to create a series of new towns across the UK to help deliver its promise to build 1.5m homes in the next parliament.
Although new towns were not mentioned in the King's Speech, a New Towns Taskforce was convened by MHCLG on 31 July 2024 demonstrating that new towns remain key to the Government delivering on that promise.
Labour's plans
Amid a package of other measures to boost housebuilding, Labour's manifesto promised “a new generation of new towns, inspired by the proud legacy of the 1945 Labour government”. Before coming into power, the party also announced plans to create a New Towns Commission within six months of being elected, a list of potential sites within a year and a "new towns code" which developers will be required to meet, including a target of 40% affordable homes (although this specific target was absent from the manifesto itself) and standards for design, quality and green space.
The government clearly remains committed to these plans, as shown by the establishment of the New Towns Taskforce and the wider policy statement that accompanied that announcement.
New towns of the past
New towns have a long history in the UK. The Labour manifesto promised to revitalise the successful postwar "new towns" programme, which went on to deliver hundreds of thousands of new homes from 1946 to 1970. This period was the heyday for new towns, delivering 32 new towns across the UK – including Stevenage (the first new town delivered under the programme), Basildon, Harlow and Milton Keynes.
Since then, successive governments have attempted to revitalise new towns in various different guises, such as New Labour's "ecotowns" and David Cameron's "garden towns and villages"— but these programmes were widely criticised for falling short against delivery ambitions.
What are new towns?
Despite the different names for them, the key underlying principles are the same. The aim of new towns is to allow for new homes to be built alongside the infrastructure, transport and public services required for a community to thrive. A new town takes a more holistic, neighbourhood-based approach to urban development, sometimes across multiple authority boundaries, by joining up planning powers, new funding streams and government support to de-risk sites and deliver at scale. This type of placemaking requires a major government intervention (either at a national or local level) to drive development with a clear focus – these days such focus is likely to be aimed at quality standards, climate resilience, meaningful community engagement, affordability of housing, revitalised town centres and legacy stewardship. Labour have indicated a desire to work in partnership with local leaders and communities on new towns, although they can also be led purely by central government.
Legal mechanisms to deliver new towns
Development corporations are the main mechanism used to deliver new towns. These are independent entities established by government for the purpose of delivering a new town. Armed with numerous powers over planning and delivery (and in particular compulsory purchase powers), they provide a single designated body to oversee the entire new town development, in order to streamline the process and leverage in funding and private sector involvement.
Traditionally, development corporations are governed by the New Towns Act 1981 and established and led by central government, but as part of its levelling up agenda, the previous government introduced new legislation which also enables local authorities to create and oversee locally-led new town development corporations.
Whilst development corporations under the New Towns Act 1981 tend to be the conventional mechanism for delivering new towns, they are by no means the only option available. For one it is possible to establish other types of development corporations (with different powers and structures) pursuant to other legislation, such as Urban Development Corporations. Other governance arrangements entirely may be more suitable, depending on the objectives of the relevant authorities, such as purpose driven delivery companies, joint planning committees and joint venture development partnerships.
What's next?
On 31 July 2024 MHCLG issued a policy statement on new towns, which confirmed that:
- A New Towns Taskforce has been convened and will be led by Sir Michael Lyons and Dame Kate Barker. The taskforce will produce a final shortlist of recommended locations within 12 months, but with freedom to recommended specific sites earlier if beneficial to the government's housebuilding drive.
- New towns will include both new communities built on greenfield land, as well as urban expansions and urban regeneration schemes.
- Each new town will be at least 10,000 homes but some will be much larger.
- A "New Towns Code" will be produced to ensure that development will be well-designed and include 40% affordable housing with focus on social rent.
- Some "spades in the ground" are expected before the end of the Parliament.
It remains to be seen whether the Government will introduce new legislation or rely on the current legislation to achieve their aims.
If you have any queries regarding new towns please contact Jessica Arczynski or Sarah Monaghan.
