New Towns: Foundations, futures and finances PART A

New Towns

Foundations, Futures & Finances

From the 1950s to the 1970s, successive governments oversaw the construction of more than 30 new towns across the UK. The focus then shifted towards regeneration and smaller urban extensions, and more recent smaller-scale initiates to create new settlements have not gained traction. In this new research report, we examine how the government’s ambition to build these new settlements could be realised in both planning and financial terms, while also considering where these settlements could and should be delivered. The full report, along with our conclusions, will integrate all elements: the foundations, future, and finances, of new towns.

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A housing crisis

What's different now

Defining success

Get in touch

A housing crisis

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Get in touch

Defining success

What's different now?

07881 002644

Chris Hemmings Partner

07775 562081

Leslie Schroeder Head of Residential Research

07917 233498

Sophie Davidson Associate, Research

In the next phase of research, we analyse where might be the best locations for a new town in England, and how we can create the right strategic framework for them to succeed. Can new towns be delivered within the current planning framework and what powers or frameworks, might enable better, faster and cheaper delivery?

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New towns can serve as models for sustainable urban development, contributing significantly to the UK's overall environmental goals.

Several factors that facilitated the delivery of new settlements are not transferable to the government’s proposed new towns programme.

It seems unlikely that public finances will be readily available in the same way that they were used to fund the development corporations. Instead, today’s environment is characterised by constrained public finances and a heavy reliance on private investment. Government borrowing is already significant, limiting the potential for large-scale public funding for new housing projects and accompanying infrastructure.

Spatial planning

Urgent need for housing

Increased demand coincides with a slowing in the growth of new build construction.

Availability of public finance

The spatial planning landscape has evolved significantly since the post-war new towns era, and further change is on the horizon. During the 1950/60s the focus was on national reconstruction. Under the 1946 New Towns Act, areas designated as new towns were able to see rapid development, through the establishment of development corporations which had significant powers over land acquisition and planning.

The post-war housing crisis in the UK was deemed a national emergency. The sense of urgency to rebuild fuelled a national consensus for government intervention. While the catalyst is different today, we now face a housing crisis driven by a complex interplay of factors: insufficient housebuilding (for a number of reasons, including: changing government policies, economic factors, and planning system issues), affordability issues, and a growing population. Like the post-war era, there is an increasing recognition of the need for government intervention, though the form it takes is debated.

This is largely due to changes to government policies and local government structures, the evolution of funding and investment mechanisms, and a more challenging planning environment (including land assembly difficulties and planning regulations).

Key

Currently supportive

Potentially supportive

No longer applicable or hinders progress

New build units built per annum (England) (Source: MHCLG)

Early 1900s

Post-War era

2000s

2015 - 2024

Beyond 2025

The New Towns movement 1946: New Towns Act passed – enabling government-led new town development in response to post-war housing shortages 1960s - 1980s: Major new towns like Milton Keynes, Stevenage, Crawley, and Bracknell are developed, with government funding and Development Corporations playing

Attempts at sustainable settlements Mid-2000s: Labour introduces the eco-towns initiative, aimed at sustainable development 2010: Most eco-town plans scrapped after a change in government and local opposition 2010: Regional Spatial Strategies abolished, marking a shift toward localism in planning

Policy evolves amid growing crisis 2015: Conservative government launches Garden Towns and Villages programme 2017: Policies refocus on ‘sustainable communities’ under “Garden Towns” September 2024: New Towns Taskforce formed by Labour to oversee a new era of planned towns November 2024: First call for evidence by Taskforce; local authorities invited to propose sites December 2024: Labour publishes devolution white paper proposing Strategic Authorities and expanded mayoral powers

What's next February 2025: Labour government provides update on the new towns programme Summer 2025: New Towns Taskforce to deliver recommendations to ministers Late 2020s - 2030s: If supported, first new towns under this scheme may begin development, likely in phased rollouts over several decades 2030s - 2040s: If supported, first new towns under this scheme may begin development, likely in phased rollouts over several decades

Foundations 1903: Letchworth Garden City, the first in the garden city movement, is founded 1920: Welwyn Garden City established, furthering the concept of planned, green, and self-contained communities

Early 1900s

Post-War era

2000s

2015 - 2024

Beyond 2025

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Part A: The scale of the challenge

In the final phase of our research we examine the challenges in financing the necessary infrastructure. New towns are characterised by significant upfront and then phased infrastructure costs. However, this does not fit the standard housebuilder model. Against a background of constrained public sector funding, we focus on the challenges of financing the infrastructure over timelines of potentially 30 years or more, and the part that both the private and public sectors can play.

Next phase

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Part B

Part C

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