020 7405 4600

Accessibility Icon

Twelve New Towns for the Future

New Towns Taskforce. What Comes Next for Local Authorities and Developers?

Conrad Turnock and James Goldthorpe

As cries ofBuild Baby Build’ echoed around the Labour party conference hall in Liverpool last week, planning and real estate professionals across the country were reviewing the New Towns Taskforce’s report to Government, published on 28th September.

The report recommends that the Government consult on 12 proposed new town and urban expansion locations. Three priority sites have already been identified for early development this parliament.

Early development locations:

  • Tempsford, Bedfordshire
  • Crews Hill and Chase Park, North London
  • South Bank, Leeds

Local government is central to the success of these locations and others to follow. Sharpe Pritchard is already supporting councils through major planning, regeneration and governance challenges. Learn more about our local government development and planning support.

While the headlines focused on site selection and a renewed YIMBY (Yes, In My Backyard) theme, the report contains detailed proposals that will reshape how new towns are delivered. These recommendations give a clear signal of what is coming for host authorities, landowners, developers and infrastructure providers.

You can also download a wider overview of the trends shaping planning and real estate in 2024 in our Spotlight Roundup – Real Estate and Regeneration 2024 (PDF).

Affordable Housing, Infrastructure and Viability

Recommendation 6 proposes a substantial shift in expectations. The Taskforce calls for:

  • A minimum of 40 percent affordable housing in every new town
  • At least half of that to be for social rent

These are ambitious targets that may be difficult in areas facing high infrastructure costs or lower land values. Our team advises across the affordable housing landscape and can support delivery models that work. Read more about our Social Housing advisory team.

The report goes further. Where viability testing shows that 40 percent is not deliverable through land value capture alone, central government grant funding should step in. The Spring Statement announced a £39 billion investment in affordable housing earlier this year, suggesting that funding routes will be available.

Funding Infrastructure Upfront

Recommendation 40 stresses the importance of early government intervention. The Taskforce proposes that upfront funding should enable delivery vehicles to:

  • Acquire land
  • Deliver early infrastructure
  • Secure planning permission

This approach would allow serviced parcels to be sold on to developers, helping the public sector capture increased land value and reducing reliance on section 106 agreements and CIL.

Recommendation 43 reinforces this need for government departments to prioritise new towns in budget planning. The goal is to prevent delays that often affect essential social infrastructure delivery.

There is a close eye on the Autumn Budget and forthcoming viability guidance, which will influence how roles and responsibilities sit between the public and private sector.

Delivery Vehicles. The Role of Development Corporations

Development corporations have a long legacy in delivering new towns. The Taskforce suggests continuing this model.

Headline proposals include:

  • Development corporations to deliver all new towns eventually
  • Interim delivery vehicles in the early phases
  • Legislative changes through the Planning and Infrastructure Bill to standardise powers across models

Development Corporations as Planning Authorities

Recommendation 16 proposes that once established, development corporations should become the local planning authority for their defined area, using powers including:

  • Local plans specific to new towns
  • Supplementary plans
  • Granting outline permissions
  • Development orders including Special Development Orders and Mayoral Development Orders

Transfer of Functions Orders will handle the practical shift of powers. Recent examples of orders made for Ebbsfleet and Old Oak Common may offer local planning authorities an early glimpse of how planning functions are likely to be reallocated.

Sharpe Pritchard already advises on these complex delivery models. Learn more about our Real Estate, Planning and Regeneration team.

Notably, recommendation 18 does make clear that there should be an ‘increased role in the delivery of New Towns for local or combined authorities that have a strong recent track record of housing delivery”.

Whilst not mentioned in the report, we are interested to see whether the ‘Locally-Led’ development corporations, conceived in the Levelling Up and Regeneration Act 2023, are to play a role on this basis.

Planning Policy. Immediate Protection and Long Term Certainty

The Taskforce sets out several planning policy changes that will be required.

Preventing Piecemeal Development

The report calls for near term action to prevent speculative schemes on new town sites that could undermine delivery.

The Government has already stated:

“Planning decision makers should give consideration to any potential impacts of other developments on the delivery of the locations for potential new towns as recommended by the New Towns Taskforce.”

Housing Numbers and the NPPF

Recommendation 24 deals with the relationship between new towns and local housing need targets under the National Planning Policy Framework. Policymakers face a familiar balancing act.

Local authorities will be watching this closely, since inclusion or exclusion of new town homes will affect plan making and likely collaboration.

What Happens Next?

Momentum behind these proposals is clear from the Government’s initial response.

Work already underway includes:
• Due diligence across all proposed locations
• Homes England instructed to begin Strategic Environmental Assessments on the most promising sites

As delivery structures take shape, land assembly and public sector led approaches will rise in importance. We help public bodies and developers navigate consent, viability, compulsory purchase and governance. Learn more about our compulsory purchase and land assembly advice.

Sharpe Pritchard will continue to publish insights exploring key elements of the Taskforce proposals in more detail over the coming months.

If you would like to discuss how this evolving policy landscape affects your planning or development strategy, please contact us today for tailored advice.

Please get in touch with our team HERE.


Disclaimer

This article is for general awareness only. It does not constitute legal or professional advice. Law and guidance are subject to change and should be checked for updates. Please contact us for specific advice.

 

Author(s)

To find out how we can help you, please contact us today