The Government has appointed Sir Michael Lyons as Chair of the newly established ‘New Towns Taskforce’, and Dame Kate Barker serving as Deputy Chair.
Sir Michael noted that the taskforce “will work closely with local leaders, communities as well as the wider development and investment sectors to make sure these new towns are built in the right places.”
Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “We applaud the Labour government for reviving the new towns policy. From stimulating regional growth and boosting construction worker capacity, to creating affordable housing in unaffordable regions and designing the places of the future, new towns are a strategic policy mechanism.
“There are considerable opportunities to involve local employers, investing regional contractors and SME builders in the process, particularly as policies, such as the subdivision of large sites, already exist to achieve that in practice.”
The new towns programme will include the creation of large-scale new communities built on greenfield land and separated from other nearby settlements, as well as numerous urban extensions and urban regeneration schemes. Each new settlement will initially contain at least 10,000 homes but will be able to deliver more in the future.
All new towns will be well connected, well designed with all necessary infrastructure, and aim to deliver 40% affordable housing.
The final shortlist of locations will be announced before the end of August 2025, with the first taskforce meeting scheduled for September.
Rico Wojtulewicz, Head of Policy and Market Insight for the NFB, said: “As well as being necessary, a new towns and urban extension policy is a pragmatic way to build 1.5million homes over the next parliament. As Homes England can be appointed a local planning authority, the Government will be able to realise their ambitions almost immediately.
“Their delivery will also help the Government understand where the planning pinch points are and why reforms that industry lobby for, are so important to unlocking and sustaining growth and better places.
“Nutrient neutrality and Biodiversity Net Gain (BNG) are going to be considerable viability challenges for new towns, which is why I believe Compulsory Purchase Order reforms will be prioritised to help reduce the cost of land. However, industry will hope that the viability challenges alert the Government to the disproportionate nature of nutrients policy and why onsite solutions are key to making BNG work for builders and biodiversity.”
British Property Federation’s Chief Executive Melanie Leech CBE said Sir Michael Lyons and Dame Kate Barker are hugely experienced and are excellent appointments to lead the New Towns Taskforce.
“New towns are a vital part of not just delivering growth and homes but of creating the places of the future,” she added. “They will take time to deliver and that's why it's positive to see Government acting so soon after being elected.
"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.
"I hope the New Towns Taskforce will take into account Monday's announcement on reviewing the business case and funding for infrastructure projects, and that new town locations will align with the sites able to absorb new communities. This would make the measures announced this week, when viewed as a whole, one of the most significant statements of intent on housing and placemaking we've seen in years."
The TCPA’s chief executive, Fiona Howie, said progress with the taskforce is both important and welcome: “The TCPA is clear that large scale strategic growth is an important part of the portfolio of solutions necessary to address the housing crisis and we look forward to working with Sir Michael Lyons and Dame Kate Barker.
“The detail of the ‘New Towns Code’ will be important in setting expectations for these new communities from the start. They need to be well-connected and well-designed, and this must include being exemplars in relation to net zero, nature and supporting health and wellbeing. Making sure new development is in sustainable locations will therefore also be a key to success. Infrastructure that is delivered upfront is vital – and this needs to include social infrastructure if we are to create thriving communities in the long term.
“But the taskforce must also consider delivery. An important lesson from previous programmes on new large scale development, including the post-war New Towns Programme which delivered 32 New Towns that now house around 2.8 million people, is that we need real leadership from central government. If we are to tackle the housing crisis we need a long term vision and commitment from government and interventions that help de-risk sites. This cannot be left to the private sector to deliver on its own.”
