Build a new town in London

The government has committed to building new towns with at least 10,000 homes but where should they go? London is the obvious place, says Jonathan Seager If you were asked to picture a new town in England, what comes to mind?   Some of the better-known settlements established in the mid-20th century may well feature – [...]

Dec 18, 2024 - 07:00
Build a new town in London

Rents continued to rise in London

The government has committed to building new towns with at least 10,000 homes but where should they go? London is the obvious place, says Jonathan Seager

If you were asked to picture a new town in England, what comes to mind?  

Some of the better-known settlements established in the mid-20th century may well feature – Milton Keynes and its roundabouts, perhaps Stevenage with its pedestrianised town centre or further north, Runcorn on the southern shore of the River Mersey.   

There is nothing new about new towns. From the garden cities of the early 20th century, through to the post-war new towns and more recently eco-towns and garden villages, large, new communities have long been a feature of the UK’s development. Not all these initiatives have worked. Indeed, the recent history of trying to build major new developments has often got lost in politics, planning and a lack of infrastructure. Could that be about to change? 

This summer the government set out high-level plans to reinvigorate the new towns concept in support of its ambitious housebuilding agenda. A government policy statement set out that new towns will need to be at least 10,000 homes, though some will be considerably bigger, well-connected, well-designed, sustainable and attractive places which include infrastructure and amenities. A taskforce, chaired by Sir Michael Lyons, has been established to advise the government on potential locations for new towns, with a call for evidence seeking sites closing this week.  

Finding the right locations to accommodate more than 10,000 new homes will be no mean feat. So, where may fit the bill?  

London might not be an obvious answer, but it ticks all the boxes 

A new report by BusinessLDN in partnership with leading consultants across the built environment sets out the case for London to have at least one new town. The capital’s housing crisis means it must pull every lever to increase housebuilding. London is behind on its housebuilding targets, which are set to increase, and is the most unaffordable region in England, with a significant temporary accommodation challenge. London’s boroughs are currently collectively spending £4m a day to support homeless households.

The capital contributes around a quarter of the UK’s economic output, but employers are finding it increasingly difficult to attract and retain staff due to high housing costs. Locating a new town in London would boost the government’s growth mission and housing ambitions by delivering more homes to support labour mobility to underpin economic growth in London and the UK.

The capital’s unique powers and structures mean it could quickly establish a framework to deliver a new town, acting as a trailblazer for the rest of the country. The Mayor has strategic plan-making powers through the production of the London Plan – the spatial development strategy for the capital. Mayoral Development Corporations can be created to oversee large-scale development, providing powers over town planning, infrastructure provision and land acquisition, amongst other areas.

The capital’s unique powers and structures mean it could quickly establish a framework to deliver a new town, acting as a trailblazer for the rest of the country

The Mayor is responsible for Transport for London (TfL), with the ability to align the growth of London’s transport network with the development needs of the capital, and TfL’s property arm, Places for London. Plans have also been outlined by the Mayor to establish a City Hall developer which could help unlock publicly owned sites for housing. Bringing all these powers and bodies together in support of a new town could deliver rapid progress.

Any new town will have to provide the necessary infrastructure to support a new community, enable a high-density development and become an economically sustainable place. London can deliver against these criteria as well as being of a scale that it could accommodate any type of new town the government has set out – greenfield settlement, urban extension or urban regeneration. That potential is only set to grow as the government updates its National Planning Policy Framework with a view to unlocking previously developed land in the green belt.

Much has changed since the last wave of post-war new towns were formed and while London wasn’t part of that process it should sit at the heart of the government’s next generation of new towns. The capital is well positioned to move quickly to establish the framework to deliver a new town and play its part in boosting both housing and economic growth.

Jonathan Seager is policy delivery director at BusinessLDN