The UK Government’s “New Towns” initiative

Following an independent report by the New Towns Taskforce, the UK Government confirmed in late September 2025 that they will be progressing their “New Towns” initiative – an ambitious plan with the aim of tackling the housing shortage, building sustainable communities, and supporting economic growth

In simple terms, the plan aims to deliver 12 new towns across England, with at least 10,000 new homes in each town.  This is a long-term project, anticipated to span the next 10 years at least.

Where will these New Towns be located?

The proposed locations of these new towns cover the North, Midlands and South of England, with the Government commenting that sites at Tempsford in Bedford, Crews Hill and Chase Park in Enfield, and Leeds South Bank look most promising.

Some will act as a large extension to existing cities, while others will be built from scratch, with the idea being to distribute growth rather than focusing on London and the South East.

How big will each New Town be, and what will they consist of?

Each new town is expected to deliver at least 10,000 homes, with over 300,000 in total anticipated in the coming years, with affordable housing being a major part of the plan.  The ambition is that about 40% of all the homes in each town will be “affordable housing” for families and first-time buyers, and half of those will be for social rent.

The vision is that these towns will be complete communities with homes, schools, GP surgeries, shops, community centres, green space and transport links, with thousands of jobs being created.

How will the initiative be delivered?

The focus is on large-scale, communities rather than gradual development. The policy is clear: strong infrastructure, transport connectivity, communities, green spaces, environmental resilience, and a mix of occupancy types.

While the Government have not yet published full breakdowns of how every new town will be funded, the suggestion is that public and private funding will be combined, with a recent report from the Built Environment Committee finding that delivering the infrastructure first using government funding would most likely encourage private and alternative funding.

Next steps and timeline

With the New Towns Taskforce being established in September 2024, and their report only recently coming out, further consultation is still required, but construction on the first sites is anticipated to begin by 2029 with full build-out potentially spanning the next 10-20 years.

Conclusion

The New Towns initiative is one of the boldest strategies the UK has seen post-1945.  For homeowners, it offers the possibility of new homes in well-designed, purposely adapted places.  For developers and local authorities, it suggests opportunity but also complexity: large scale, quick delivery means, collaboration, planning consents, funding, land parcel combining for redevelopments, material availability, and possible long lead times.

Whether you are a homeowner, an investor, local authority, landowner or just interested in how the housing landscape develops, keep an eye on “new town” site announcements, policy reviews and reports, as there are sure to be lots of interesting evolutions and shifts within the housing market, planning policies and infrastructure funding over the coming years.

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