BLOGS

Introduction: A return to new town thinking

Britain is facing a housing crisis that incremental infill development alone cannot solve. With over 24.7 million households competing for limited stock—and homeownership rates stagnating at around 62%—the government has revived a concept that shaped postwar Britain: purpose-built new towns.

The proposal for seven new towns across England aims to deliver infrastructure-led development at scale, with each settlement potentially housing tens of thousands of residents. For developers, investors, and local authorities, understanding where these towns might emerge—and what lessons can be drawn from current large-scale schemes—is essential.

The housing supply challenge: What the data shows

REalyse planning data reveals over 690,000 residential units are currently proposed in large-scale schemes (500+ units) across the UK pipeline. Central London alone accounts for nearly 157,000 units across 84 major schemes, while high-growth corridors such as Cambridgeshire (33,800 units), Greater Manchester (33,600 units), and Kent (28,000 units) show significant concentrations of proposed development.

However, much of this pipeline remains stuck in planning limbo. REalyse data shows that across all large-scale schemes submitted in the past three years:

• Approval rates vary significantly by region: Central London has secured consent for 43 major schemes, while counties like Kent, Hertfordshire, and Surrey have no approved large-scale residential projects in the current pipeline

• Over half of major schemes remain pending: With an average of 4.3 schemes per region awaiting decisions, delays in the planning system continue to constrain delivery

• Refusal rates remain low but impactful: Schemes rejected at scale—such as those in Hertfordshire (3 refusals) and Central London (3 refusals)—represent thousands of homes lost from the pipeline

These patterns underscore why the government believes new towns, with streamlined planning processes and dedicated development corporations, could bypass the bottlenecks affecting urban brownfield and suburban expansion sites.

Transaction volumes signal constrained supply

Looking at recent market activity, REalyse transaction data shows UK residential sales totalled approximately 1.05 million in 2025, down from 1.19 million in 2024. Average prices paid have softened to around £330,000, reflecting affordability pressures and economic uncertainty.

These figures point to a market where supply constraints continue to limit transactions. The tenure breakdown is equally instructive: 61.6% of UK households are owner-occupied, 20.3% privately rented, and 17.1% in social housing. With private rental demand persistently high, new towns that incorporate mixed-tenure housing—including build-to-rent and affordable homes—could address multiple market segments simultaneously.

Why new towns, and why now?

The new towns model offers several advantages over piecemeal development:

Integrated infrastructure from day one

Unlike speculative development where infrastructure often lags housing delivery, new towns can plan transport links, schools, healthcare facilities, and green spaces before the first residents arrive. The government has signalled that these settlements will benefit from accelerated planning consents and coordinated utility delivery.

Scale economies for developers

REalyse data shows the average large-scale scheme proposes around 1,150 units. New towns operating at 10,000–50,000 homes would offer developers longer-term certainty, phased delivery schedules, and the ability to invest in placemaking that smaller sites cannot support.

Addressing regional imbalances

The pipeline analysis reveals heavy concentration in London and the South East. Strategic placement of new towns in the Midlands, North, and areas with strong transport connectivity could spread development pressure and support levelling-up objectives.

Potential locations and what to watch

While specific sites remain under consultation, REalyse planning data suggests regions already managing substantial development pipelines—Cambridgeshire, Oxfordshire, Hertfordshire, and parts of the East Midlands—have the planning capacity and land availability that new town designations require.

Key indicators for investors and developers include:

• Land assembly activity: Watch for increased transactions involving agricultural land near strategic transport corridors

• Infrastructure commitments: Government announcements on road, rail, and utility investment will signal serious intent

• Development corporation appointments: The creation of dedicated delivery bodies—similar to those that built Milton Keynes and Stevenage—will mark the transition from policy to implementation

Outlook: A generational opportunity with execution risks

The new towns proposal represents Britain's most ambitious housebuilding agenda in decades. REalyse data shows the existing pipeline has the scale to deliver hundreds of thousands of homes, but systemic delays mean that potential rarely translates to completions at the pace required.

If the government can deliver on accelerated consents, upfront infrastructure funding, and clear long-term land designations, the seven new towns could reshape housing markets across the regions they serve. For developers with the balance sheets to commit to multi-decade schemes, and investors seeking scale alongside managed risk, this policy marks a generational opportunity.

The coming 18 months will be decisive. Site selections, funding announcements, and the legislative framework for development corporations will determine whether new towns become transformational—or remain another chapter in Britain's long struggle to build enough homes.