The Government trims New Towns shortlist to seven
26th March, 2026
The Government has promoted its New Towns initiative as "the largest housebuilding programme since the post-war era" capable of delivering "well-designed, beautiful communities" and making a meaningful contribution to its target of building 1.5m new homes by the next election.
This week the government’s plans for New Towns took a major step forward when seven locations for New Towns advanced to the final shortlist. In this article, Alexander Rose and Abigail McAllister look into what this means in practice and the legal issues which may arise in the delivery of the New Town initiative.
What are New Towns?
The original New Towns programme was the most ambitious town-building effort ever undertaken in the UK. In the years after 1946, it was responsible for the development of towns such as Stevenage, Milton Keynes, Hemel Hempstead, Newton Aycliffe, East Kilbride, Welwyn Garden Cit, Basildon and Bracknell.
Given the housing shortage, the current government has pledged to create a new wave of new towns. These are defined as being complete, self-sustaining communities, involving the creation of at least 10,000 new homes and contributing to the economic growth of the country.
A New Towns Taskforce was established in July 2024 to identify prime locations, reviewing over 100 sites before recommending twelve in a well received report.
… And then there were seven
In March 2026, the government decided to reduce the recommended list from twelve to seven, announcing a consultation about the chosen sites. The surviving locations for new town development are:
- Chase Park and Crews Hill, Enfield
- South Bank, Leeds
- Victoria North, Manchester
- Tempsford, Central Bedfordshire
- Thamesmead, Greenwich
- Brabazon and the West Innovation Arc, South Gloucestershire
- Milton Keynes, Buckinghamshire
Whilst names of the New Towns are yet to be confirmed, current contenders include:
- Elizabethtown
- Pankhurst
- Attleeton
- Athelstan
- Seacole
Consultation and next steps
The public consultation on the seven proposed locations opened on 23 March 2026 and will close on 18 May 2026. The government is seeking views on the suitability of the proposed sites and are waiting on findings of their Strategic Environmental Assessment (“SEA”) Final decisions regarding the number, location and naming of the New Towns are expected in late Summer 2026.
The government has reiterated its intention for the New Town developments to be taken forward quickly and on getting “spades in the ground on at least three new towns in this parliament” once final proposals have been confirmed.
Before development begins, each proposed site will be assessed against 11 key objectives, ensuring sustainability and long-term viability. These include:
- Air quality
- Biodiversity, flora and fauna
- Climate change and flood risk
- Health and wellbeing
- Historic environment
- Landscape and townscape
- Land use, geology and soils
- Materials and waste
- Population
- Water resources
This assessment will shape the government’s final decision as to which sites are suitable to move forward for development.
The New Town Unit
To support the Taskforce, four interim advisors (Lyn Garner, Ian Piper, Emma Cariaga; and David Rudlin) have been appointed. Together, they will provide expertise, oversight, and a direct line for escalating key issues to government.
Proposed placemaking principles
Delivering New Towns is a bold and ambitious policy and the government has been clear from the outset that the aim is not simply to build additional housing stock but instead to “create thriving communities which will have the supporting social and economic infrastructure and public services and amenities they require“. Accordingly, the government’s placemaking principles emphasise creating well-connected, sustainable communities from the outset. This means early investment in:
- Schools and other educational facilities
- Healthcare services
- Walking, cycling and public transport infrastructure
- Green spaces and community amenities
Affordability is also central to the proposals, with a target of 40% affordable housing, at least half of which will be for social rent.
The government is also keen to promote infrastructure that promotes social interaction and a sense of community, for example:
- Manchester’s Victoria North is expected to include metro links, a health centre, park and both a primary and secondary school. This project was initially projected to complete in the next 20 years but government backing would significantly shorten this projection by up to half the amount of time.
- The Tempsford New Town is to be built around a new East West Rail Station which will connect the new development to the surrounding cities of London, Milton Keynes, Oxford and Cambridge.
Who will lead on delivery of the New Towns?
Such ambition requires careful planning. Local authorities will be expected to take the lead in the initial stages of planning and preparation, but to do so in partnership with local stakeholders, Homes England and the government’s specialist New Towns unit.
Whilst the preparatory stage is expected to be primarily handled by local authorities, the lion’s share of the work of delivering the New Towns is expected to be undertaken by development corporations established for this purpose.
Development corporations are statutory bodies that are able to take on powers and functions from other parts of the State in order to take forward the regeneration of a particular area. The New Towns of the 1940s and 1950s were primarily delivered by development corporations. For this next generation of new towns, the taskforce anticipates that development corporations will be the “preferred instrument of delivery” because they will “bring skills and increased confidence as well as reflecting government commitment“.
There are different models of development corporation. In areas that have benefited from devolution deals, it seems likely that Mayoral Development Corporations will be created. In areas without a Metro Mayor, it seems likely that New Town Development Corporations or Locally-Led Urban Development Corporations will be established. Whichever model is chosen, care will need to be taken to ensure that robust governance arrangements are in place, but also that the development corporation has the skills and resources to deliver the functions it has taken on.
Public funding to unlock private sector development
Public funding will be used to make the development of the New Towns sites sufficiently attractive for the private sector to step in.
At the outset, public funding will be used to finance masterplans and to assemble sites (through the pooling of existing land in the ownership of the public sector, negotiated acquisitions and, by exception, compulsory purchase orders).
Public funding will also be used to invest in new roads and other transport infrastructure, install utilities and to de-risk sites (for example addressing abnormal conditions).
At this stage, the government has not announced a grant funding programme specifically to accelerate the development of New Towns sites. Indeed it would appear that no dedicated public funding will be made available. Therefore, it seems likely that local Metro Mayors will need to utilise their own pots of funding for works, whilst also looking to utilise grant funding from programmes such as the Brownfield Housing Fund and Homes England’s Social and Affordable Housing Programme. The National Housing Bank, a financial institution backed by government funds, will be launched on 1 April 2026 with up to £16 billion of financial capacity and is expected to be utilised as part of the New Town developments.
Legal issues arising from the New Towns programme
Delivering New Towns will involve detailed legal advice. At the preparation stage, detailed checks will need to be undertaken in and around the sites to understand issues that could jeopardise or slow down delivery.
Experts will need to be procured to work on the masterplans, but there will also need to be extensive planning applications and consultations. Development corporations will need to be established with robust governance procedures.
Whenever public funding is used checks will need to be undertaken to ensure compliance with subsidy control law. It will also be necessary to work closely with public authorities to ensure that developers deliver housing of sufficient quality.
Although complex, the legal issues appear manageable provided that each of the steps is approached methodically and in the correct sequence.
Will New Towns ever be created upon the sites left off the shortlist?
The five locations which did not make the shortlist (Adlington, Heyford Park, Marlcombe, Plymouth and Wychavon Town) were joined by another location (South Barking) in a list of viable developments which might be considered in due course. However Adlington has attracted notable local opposition due to the potential loss of around 1,000 hectares of Green Belt land.
Conclusion
The New Towns will create much needed housing but present a serious challenge for the public and private organisations tasked with their delivery. Preparation will be key. The government is expected to finalise its proposals in late Summer 2026 and then attention will turn to how best to deliver the works needed to unlock development.
Ward Hadaway is a leading law firm with experience of advising upon major projects, especially those backed by public funding. If you would benefit from our expertise, please do get in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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