Mayoral Development Corporations – Frequently Asked Questions

What is a Mayoral Development Corporation?

A Mayoral Development Corporation (MDC) is a statutory body established to drive the regeneration of one or more sites (the Mayoral Development Area) and is equipped with specialist powers for this purpose, including ability to act as the planning authority, to offer subsidies and install infrastructure as well as to own, develop and dispose of property.

How are Mayoral Development Corporations established?

The process to establish a Mayoral Development Corporation involves the designation of a ‘Mayoral Development Area’ by a Metro Mayor (leading a Mayoral Combined Authority or a Mayoral Combined County Authority) following a consultation involving prescribed stakeholders and a notice being submitted to the Secretary of State for Housing, Communities and Local Government.  This will lead to an order being created to establish the Mayoral Development Corporation, which is laid in Parliament and specifies the powers and functions of the new organisation.

Once a Mayoral Development Corporation is set up, the relevant Metro Mayor has the power to appoint board members to the MDC, but also to give directions and guidance to support the MDC in the carrying out of its activities and functions.

The relevant legislation sets out a process for the transfer of property, rights and liabilities into an MDC, which involves the Secretary of State consulting with the individuals or institutions whose property, right or liabilities are intended to be transferred, as well as relevant Metro Mayor.

What powers do Mayoral Development Corporations have?

Mayoral Development Corporations can be set up to have a wide range of powers, including:

• Taking on the role of the role of local planning authority / minerals and waste planning authority for its area
• To remediate, regenerate or develop land (either directly or through partners) to bring about its more effective use
• To install new infrastructure, including utilities and roads
• To repair, renovate or demolish buildings
• To acquire land through commercial agreement or compulsory purchase orders
• To extinguish public rights of way, and in relation to burial grounds and consecrated land
• Adopt streets
• Establish or acquire businesses
• Set up joint ventures with the private sector
• Award subsidies (including rates relief)

What lessons can we learn from existing Mayoral Development Corporations?

In November 2025, Ward Hadaway hosted a webinar bringing together experts with valuable experience of working either within or alongside existing Mayoral Development Corporations.

Beverley Bearne, the Chief Operating Officer for the Hartlepool and Middlesbrough Development Corporations, underlined the importance of having clear roles and responsibilities, as well as the benefits of building close working relationships with local stakeholders.

Stuart Howie, Principal and Devolution Delivery Lead at Avison Young, explained that ‘one size does not fit all’ and emphasised the importance of identifying at the outset, the role that the Mayoral Development Corporation is expected to play in local growth plans and how it is anticipated that the organisation will intervene within the market.

Ian Freshwater, Programme Manager (Major Projects) at the North East Combined Authority provided an overview of the North East Combined Authority’s recent decision to establish a Mayoral Development Zone spanning sites in both Newcastle and Gateshead, providing insight into the evidence base that will be built up ahead of a decision being made as to whether to establish a Mayoral Development Corporation.

Alexander Rose explained that we’re about to see a new wave of Mayoral Development Corporations created that will change how regeneration is delivered, but their effectiveness will be determined by the decisions made when they are set up and start operating.

The full recording of the webinar can be downloaded here.

What governance safeguards apply to Mayoral Development Corporations?

The government is committed to ensuring that there are robust governance and scrutiny arrangements in place for all MDCs and has recently published  guidance on this subject which emphasises that:

• the Monitoring Officer of the Mayoral Combined Authority also acts as the Monitoring Officer of the MDC;
• the Scrutiny Protocol for English institutions with devolved powers applies to decision made in regard to a MDC; and
• MDCs should “seek legal advice to properly assess risks arising from MDCs, and MDCs should seek commercial advice on risks arising from joint ventures and subsidiaries that they establish, and subsequent contractual arrangements“.

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What legal issues arise in the running of Mayoral Development Corporations?

There is a range of legal issues which arise in the establishing and running of MDCs.

This includes public law issues relating to the decision making process, use of powers and consultation processes.  It also includes commercial law advice in regard to agreements and appointments, whilst specialist planning and real estate advice is often required in respect of capital projects supported or delivered by the MDC. The projects MDCs deliver are often back by public funding which means subsidy control and public procurement advice is often sought.

Ward Hadaway can support you with all issues that arise in the creation and operation of a Mayoral Development Corporation.

Which Mayoral Combined Authorities are setting up Mayoral Development Corporations?

There are six existing Mayoral Development Corporations at this date, these are:

• London Legacy Development Corporation (established 9 March 2012)
• Old Oak and Park Royal Development Corporation (established 1 April 2015)
• South Tees Development Corporation (established 1 August 2017)
• Hartlepool Development Corporation (established 27 February 2023)
• Middlesbrough Development Corporation (established 27 February 2023)
• Stockport Town Centre West Mayoral Development Corporation (established 2 September 2019)

Current plans for new Mayoral Development Corporations include:

• In December 2025, Liverpool City Region Mayor Steve Rotherham announced plans to create Liverpool’s first Mayoral Development Corporation unlocking regeneration across 174 hectares of mainly brownfield land, stretching from Everton’s Hill Dickinson stadium into the city’s Pumpfields and commercial business districts. It is expected that the MDC will bring in the investment to create 17,500 new housing units and 5 million square feet of additional commercial space
• In September 2025, West Midlands Mayor, Richard Parker and Birmingham City Council leader, John Cotton announced the creation of a new Mayoral Development Corporation that will encompass East Birmingham and North Solihull, including the £3 billion Birmingham Sports Quarter, £4 billion Birmingham Knowledge Quarter, the new HS2 Curzon Street station and £2 billion Smithfield development;
• In November 2025, secondary legislation was laid before Parliament to establish the Oxford Street Mayoral Development Corporation with the aim of regenerating London’s most famous shopping street
• In October 2025, Greater Manchester Mayor, Andy Burnham designated a Mayoral Development Area in the Trafford area that will deliver 15,000 new homes (including affordable housing), commercial spaces, and infrastructure improvements around Manchester United’s new stadium
• In July 2025, plans were announced for a new Atom Valley Northern Gateway Mayoral Development Corporation creating 20,000 high-quality jobs and providing a £1bn economic boost to parts of Bury and Rochdale

Why has there suddenly been a surge in Mayoral Development Corporations?

Two reasons.  Firstly there’s a strong focus on delivery across both Central and Local Government at this time.  This is best articulated by the Secretary of State for Communities, Housing and Local Government, Steve Reed declaring that his mantra is “Build, Baby Build”.  Mayoral Development Corporations closely align with this focus on delivery.

Secondly, development corporations are effective. The New Towns Taskforce report praises development corporations’ “significant powers to coordinate investment, develop expertise, assemble land and facilitate faster delivery, ensuring joined-up infrastructure and amenities are in place from the outset, as well as providing more certainty about the future path of delivery“.

In terms of impact, the report goes on to state “development corporations have consistently delivered higher build out rates than alternative models” citing data from the Lichfields “Start to Finish” study which found “development corporation-led new towns of 10,000 or more homes tend to have build out rates averaging 600 or more per year; whereas commercially-led large sites with master-planned schemes (without government coordination) tend to deliver an average of c.150 homes per year, taking an average of six years from submitting a planning application to completing the first homes“.  Having a Mayor involved is considered to assist the process, adding additional accountability and helping resolve cross-boundary issues.

Therefore the ‘surge’ in new MDCs reflects their potential to be effective catalysts for delivering regeneration, but this is driven by delivery being a political priority at this time.

Conclusion

Mayoral Development Corporations are rising in importance and that means greater scrutiny will be applied to their operation. Ward Hadaway is the first choice law firm for many public sector bodies and can support in the setting up and running of MDCs. Please do get in touch if we can be of assistance to you.