Lords: New Towns plan needs strong leadership and funding

The UK Government’s ambition to deliver a new wave of New Towns will require dedicated leadership, long-term investment and a clear delivery structure if it is to succeed, according to a report published by the House of Lords Built Environment Committee.

Titled New Towns: Laying the Foundations, the report calls for a new central agency and a cabinet-level champion to drive the programme, alongside early public investment in infrastructure to unlock private sector funding.

The committee’s recommendations come shortly after the Government’s New Towns Taskforce announced a shortlist of 12 locations across England. The report warns that the current delivery framework is inadequate for managing the scale and complexity of the programme, particularly in light of constrained public finances.

Drawing lessons from the post-war New Towns programme, the report argues that upfront investment in public transport, healthcare, and education infrastructure is essential to attract long-term private capital. It urges the Government to act as a "patient investor," with mechanisms to capture land value uplift—such as reforming compulsory purchase rules and excluding hope value from land valuations.

For the property and construction industries, the report offers both opportunity and caution. While the scale of the proposed New Towns programme represents a potential pipeline of long-term development, the committee stresses that certainty around leadership, planning frameworks and funding is critical to unlocking private sector confidence.

Lord Gascoigne, chair of the committee, said: “The Government’s new towns programme is a once-in-a-lifetime opportunity to build genuinely affordable, high-quality homes and to create communities where people want to live… But a vision alone will not be enough. The Government needs to show that it has the grip necessary to drive the programme forward.”

Highlights from the report that point to challenges and opportunities for construction and property are:

* Use of Development Corporations: Delivery should be led by development corporations, with local authority involvement to ensure democratic accountability and long-term stewardship.

* Private and Public Co-Investment: A clear legal framework for long-term, patient investment will be needed to secure private capital alongside public funds.

* Skills Shortages: The report flags critical capacity gaps in planning and delivery professions, which could slow progress unless addressed urgently.

* Design and Land Use: Nationally-set design standards should be overseen by a central agency, while local variations are encouraged. Masterplans should include a mix of plot sizes to enable SME developer participation and avoid homogenous outcomes.

The report positions New Towns as a tool not only for housing delivery but also for supporting economic growth, jobs and regeneration—provided they are backed by credible leadership and a robust delivery model. The Government is now expected to respond formally to the committee’s recommendations.