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New Towns: avoiding unintended consequences for planning

01 Oct 24

The Government has made a commitment to build a generation of new towns as part of their mission to deliver 1.5 million new homes over the next parliament.

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The Government has made a commitment to build a generation of new towns as part of their mission to deliver 1.5 million new homes over the next parliament. The new towns will include large-scale, standalone, new communities built on greenfield land, urban extensions and urban regeneration schemes, containing at least 10,000 homes.

Leadership
The independent New Towns Taskforce convened on the 18th September in Milton Keynes. Their mission is to report back to ministers on high potential locations, principles and standards, investment options and solutions to barriers to delivery, within 12 months – an ambitious timeframe if genuinely new, new town opportunities are to be identified.

The top-down approach and the timetable signals an urgency in tackling the housing crisis, but delivering new homes within five years on proposals of this scale will be hugely challenging. Success will require strong, decisive leadership not just at the national level, but also from local authorities and communities. Without this, it will be difficult to secure the support needed to ensure the long-term success of new developments. Encouragingly, Council Leaders across the country are expressing an interest as part of a wider pro-growth agenda, opening up significant opportunities for cross-sector partnerships.

The Interface with the Planning System: Avoiding Unintended Consequences
The relationship between the New Towns initiative and the existing (ever evolving) planning system must be considered. These new towns are intended to provide additionality, meaning they will be over and above the 370,000-home target identified through the proposed revised standard method.

This could act as a significant deterrent to local authority backing of a new town proposal where, in many instances, administrations are already grappling with strategies to meet increased housing needs. However, it is correct that new towns should not be viewed as a silver bullet for meeting housing requirements at the expense of other more modest scale, sustainable sites.

The introduction of a new town proposal could lead to tensions in local plan-making. Therefore, it is critical that new town proposals are not developed in isolation but as part of a broader framework for growth that includes infrastructure, transport, and public services. Failing to align these developments with wider planning objectives could result in uncertainty and delays, undermining the Government’s ambitions for speed of housing delivery and universal local plan coverage.

Compulsory Powers: A Tool for Market Failure Only
It is likely that Development Corporations will be formed to steer the delivery of the new towns. Development Corporations will have development management powers as well as powers to compulsory purchase land (CPO). These are useful tools to unlock land for development where required to overcome a particular issue, but they are costly, resource intensive and time consuming and should therefore be used with caution. The use of CPO should be reserved for cases of market failure, where normal market mechanisms are unable to deliver the land required to unlock development.

In situations where the market is functioning properly, relying on development agreements and a commercially viable delivery model will lead to a similar outcome in terms of housing delivery without intervention.

Conclusion
Delivering new towns presents both challenges and opportunities. With strong leadership, a strategic approach to planning, and the careful management of land acquisition, the Government’s vision of building a new generation of new towns could become a reality, albeit unlikely within five years. By overcoming traditional planning barriers and fostering partnerships across sectors, these new towns will not only deliver the housing that the country needs but also create vibrant, sustainable communities for the future.

Lorna O’Carroll Director,Planning,Economics,Impact Management