Social housing will play ‘explicit part’ in new towns

News22.05.25by Zainab Hussain

Social housing will play an “explicit part” in setting targets for new towns, the chair of the New Towns Taskforce said.

Sir Michael Lyons, chair of the New Towns Taskforce (picture: Zainab Hussain)

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Social housing will play ‘explicit part’ in new towns #UKhousing

Social housing will play an “explicit part” in setting targets for new towns, the chair of the New Towns Taskforce has said #UKhousing

Speaking at the UK’s Real Estate Investment and Infrastructure Forum (UKREiiF), Sir Michael Lyons said that 40% of housing in new towns will be dedicated to “genuinely affordable housing”.

New towns will also provide a range of housing options, recognising the needs of different age groups.

Data from 2021 showed that 28% of young adults aged between 20 and 34 were still living with their parents, which Sir Michael described as a “broken promise to young people”.

The large-scale communities will support net-zero 2050 goals, and will be environmentally resilient through sustainable design, nature enhancement, low-carbon infrastructure and responsible development, including clear measures for flood mitigation.

In two months’ time, the taskforce will recommend locations for new towns that they deem “right”, but where there will also be “specific schemes ready to go” that will deliver early homes.

The taskforce, which focuses on economic growth first and housing second, will not only consider applications for standalone new towns, but will also include the expansion of existing towns and urban extensions to meet housing needs and contribute to economic growth.

Sir Michael told delegates that one challenge will be around assurances that early commitments on the design of housing are not “diluted” by developers under market pressures, which have previously undermined trust between commissioning bodies and those responsible for construction.

He said there must be a real partnership, with shared risks, strong contracts, and clear and robust responsibilities and delivery structures that endure over time.

Another challenge is around communities who might resent the idea of being designated a new town, as the scheme will put an emphasis on identity and eligibility.

New towns will create employment opportunities, attract new businesses and foster existing ones.

Sir Michael said: “It’s well understood that housing shortage limits labour mobility, worsens public health, disrupts education and delays family formation – each with profound economic impacts and clear implications for public expenditure.

“New towns should be seen as catalysts for investment, with the ability to unlock economic potential in areas that have been too long constrained.”

On Tuesday, the Financial Times reported that the taskforce is likely to recommend Tempsford, a village in Bedfordshire on the planned Oxford-Cambridge railway line, as an initial new town investment site.