New towns programme: Built Environment Committee releases its preliminary findings

The House of Lords Built Environment Committee is releasing the preliminary findings from its inquiry into the Government's plans for a new generation of new towns:

• Set a compelling national vision now
  The programme urgently needs a clear, engaging vision that explains what these new towns are for, what they are designed to achieve and why they matter. The Government must set this vision for both the entire programme and for each individual project, and consistently communicate it to secure investor, local authority, and public support for the programme.
  
  
• Define a purpose beyond housing targets
  The new towns must do more than count towards numerical targets: they should drive inclusive, sustainable growth, improve life chances, and act as exemplars for contemporary urban design. The Government must also ensure that the programme works to reduce regional inequalities rather than reinforcing them, not concentrating them solely in the south-east.
  
  
• Ensure clear ministerial leadership with a cross-government focus
  The programme needs strong and visible leadership from a dedicated minister with sufficient time and of sufficient seniority to drive the programme from the centre and ensure cross-government cooperation and coordination.
  
  
• Adopt an ‘infrastructure‑first' approach
  Successful new towns need transport, utilities, and social infrastructure such as schools, health facilities, shops, and community spaces and these all need to be in place from the very start. A robust and funded delivery plan for early infrastructure needs to be in place by the time the first houses are being built.
  
  
• Masterplan for quality, flexibility, and momentum
  Masterplans will need to be sufficiently detailed to provide certainty to developers and stakeholders but must also build in flexibility, be delivered in phases, and be reviewed at least every five years. They need to incorporate diverse plot sizes to encourage variety, help maintain financial viability, and allow SMEs to participate in delivery.
  
  
• Mandate high‑level design standards with local nuance
  There needs to be mandatory basic design standards—enforced by central oversight—to guarantee high quality construction and restore public trust in development, reinforced by locally specific design codes that reflect the local vernacular and context.
  
  
• Engage communities early and meaningfully
  The Government needs to set a clear national framework for engagement and co‑design as soon as the sites are announced to build legitimacy and reduce the chances of delay further down the line. Community review mechanisms can shape local design standards and ensure that residents are involved in planning the services and spaces they will use.
  
  
• Use development corporations as the default delivery vehicle
  Locally-led development corporations are a tried and tested delivery model, able to combine a long‑term focus with land assembly powers and have credibility with investors. The Government must, however, provide strong central oversight. In addition, it is essential that the Government retains a small ownership stake in each corporation to provide confidence to investors and support access to low-cost borrowing.
  
  
• Embed long‑term stewardship from the outset
  Delivery bodies must plan for the long term from their very inception and the Government should encourage the use of models—such as community trusts—that ensure that the benefit of each town's core assets flows to the community once the initial investment has been repaid.
  
  
• Finance through partnership and patient capital
  These new towns will only be possible with significant amounts of private investment, but public lending and guarantees will be essential to fund early infrastructure and sustain ambitious levels of affordable housing. A level of active participation and investment from the outset on the part of the Government will provide the certainty and security needed to derisk the projects for patient investment.
  
  
• Capture land value and broaden funding tools
  The Government must ensure that it maximises land value capture and reinvests the proceeds in infrastructure and the community, sequencing policy and site decisions to prevent value leakage. The programme provides an excellent testing ground for exploring alternative and novel financing instruments to be applied elsewhere—such as bonds, tax‑increment financing, business rates supplements, and mayoral community infrastructure levies.

These preliminary findings are being released in anticipation of the imminent publication of the New Towns Taskforce's report regarding where the Government should locate the initial phase of up to 12 new towns. 

Lord Gascoigne, Chair of the Built Environment Committee, said:

“The Government has a major opportunity to deliver high-quality, affordable, and sustainable new towns and expanded settlements at scale. However, as it stands, the Government's programme lacks a clear, engaging vision that provides a rationale for these new towns. It needs to explain to the communities that will be impacted and the wider public what new towns are designed to achieve and why they matter.

“New towns and expanded settlements have the potential to prompt huge public opposition so, before announcing the selected sites, the Government must set out a clear engagement and consult the community in a meaningful way.

“The common approach of only providing physical, commercial, and social infrastructure once houses are built needs to change. An ‘infrastructure first' approach should be adopted.

“Our committee has taken a high-level and strategic approach to assessing and scrutinising the Government's new towns programme and we look forward to publishing our full report next month.”