Government's new towns plan aims to reset housing supply

Each new town should aim for at least 10,000 homes and a minimum of 40% affordable housing, half of which would be for social rent.

Related topics:  Housing,  Government,  Labour,  New Towns Plan
Property | Reporter
29th September 2025
construction UK
"I am launching the next generation of new towns, taking the lessons from the postwar Labour government housing boom, mobilising the full power of the state to build a new generation of new towns"
- Steeve Reed - Housing Secretary

The government has published an independent New Towns Taskforce report and said it will progress work on 12 potential new towns across England, with a commitment to begin building in at least three this Parliament. The report recommends a mix of urban extensions, urban regeneration and standalone greenfield settlements and says each new town should have at least 10,000 homes and an ambition for a minimum of 40% affordable housing, half of which would be for social rent. 

The initial government response welcomes all 12 recommended locations and notes that Tempsford, Crews Hill and Leeds South Bank look most promising at this stage. A New Towns Unit will be set up to coordinate work across departments, act as a test bed for innovation and try to unblock barriers to delivery. The government says it will publish draft proposals and a Strategic Environmental Assessment for consultation in spring before confirming which locations proceed. 

Build, baby, build

Steve Reed, housing secretary, framed the programme as a national effort to expand supply and build whole communities. “We will fight for hard-working people, locked out of a secure home for too long by the Conservative government of blockers,” said Steve Reed, housing secretary. “This Labour government won’t sit back and let this happen. I will do whatever it takes to get Britain building."

"We’ve got to ‘build, baby, build’. That’s the way we put the key to a decent home in the pocket of everyone who needs a secure and affordable home. And not just homes, but communities, and not just communities, but entire towns. I am launching the next generation of new towns, taking the lessons from the postwar Labour government housing boom, mobilising the full power of the state to build a new generation of new towns.” 

The taskforce sets out criteria for locations, stressing economic purpose, local partnership and deliverability. Early recommendations include a range of settings: a standalone settlement in Adlington, an innovation corridor in South Gloucestershire, Crews Hill in Enfield, Leeds South Bank, Victoria North in Manchester and Thamesmead riverside development, among others. The government will seek assurance that any chosen site can be delivered in partnership with communities and will test different delivery vehicles to learn how best to scale new settlements. 

The report and government response place emphasis on long-term stewardship, accountable delivery bodies and integrating transport and local services from the outset. Ministers have also signalled that the programme should support regional growth and tap public and private finance, although the total cost and precise funding models have not been confirmed. Keir Starmer described the proposals as “national renewal in action”, reflecting the administration’s wider housing and regional growth ambitions. 

Next steps are practical and procedural: the SEA, a public consultation on draft plans, and further work by the New Towns Unit to firm up which locations proceed. If delivered at scale, the initiative would aim to supply a steady pipeline of homes alongside schools, health facilities and transport links. Critics will press for clarity on funding, timescales and protections for green belt and existing communities as the process moves from shortlist to confirmed schemes.

Industry reaction

"The Government’s commitment to the New Towns programme, and to using all the levers it has to enable investment to be unlocked and public and private sectors to work together, is very welcome," said Melanie Leech CBE, chief executive, British Property Federation.
 
"Development viability is under severe pressure across the country because of high materials, construction and capital costs, as well as continuing delays in the planning system and regulatory burdens, and we will need targeted and robust interventions to deliver. We share the vision for places that are highly sustainable, have strong connectivity and transport links, are aligned to the wider needs of the national, regional, and local economies, drive vibrant and sustainable high streets and offer a broad choice of housing across all tenures and affordability ranges."  

"BPF members have been building and managing places for decades, in some cases centuries, and are keen to play their part in building professionally managed homes for long-term rent, mixed-use developments for modern town centres, and the logistics and other critical national infrastructure that makes places work.”

CPRE’s Chief Executive, Roger Mortlock, said, "CPRE recognises that well-designed new towns with proper infrastructure have a role to play. Yet with growing pressure on our finite land, all development, including new towns, should follow a brownfield-first approach, led by targets. Too many of these sites will needlessly see great swathes of countryside and the Green Belt lost to development while the list of brownfield sites grows." 
 
"Many rural communities on this list are already faced with a huge hike in housing numbers following the government’s recalculation of the formula, unrelated to local housing need or demand. Faced with a new town, housing targets in these areas should be radically reduced to reflect the huge changes to their communities that a new town will bring." 

"The focus in the Taskforce’s report on urban regeneration, a new approach to housing density and affordable housing is welcome, but the definition of affordable needs rethinking and matching to local incomes if it is to tackle the housing crisis."  

"There is a massive opportunity to rethink how we build new places, faced with the climate and nature crises, that still needs more emphasis. Putting nature at the heart of these communities is not the icing on the cake; it should be the starting point." 

Paul Rickard, Chief Executive, Pocket Living, said, “This report is welcome at a time when we need to significantly increase the level of new homes. The New Towns strategy provides both a medium and longer-term housing strategy, something that is welcome. More importantly, this is an opportunity to place SMEs at the heart of a national housing strategy by allocating plots within the new towns to local SME developers. This could help reverse the impending extinction of the SME sector and vastly increase the delivery capability of the nation.”

Cllr Bev Craig, Leader of Manchester City Council, welcomed the announcement and said, “Having the Government's full backing to deliver the major Victoria North regeneration programme through the New Town Task Force is great news for Manchester – and a resounding endorsement for our vision for inclusive, sustainable growth, and a clear sign that this transformational project is a national priority. 

“Victoria North is one of the largest and most ambitious programmes of regeneration in Europe, which is creating a new town in our city – 15,000 new homes across seven distinct neighbourhoods, each connected by excellent green spaces and a new 40-hectare River City Park, all while creating jobs and opportunities for our residents. 

“We are already welcoming residents into the first completed homes, including the first of 130 social rent properties in Collyhurst, and this announcement gives us the key backing to crack on – and a vote of confidence that Manchester, along with our partners, can deliver once-in-a-generation regeneration at this scale.”

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