Leeds’ South Bank among seven new towns in £16bn housing push

The shortlist is out and Leeds place is confirmed, as the government announces a package of funding measures alongside plans that focus on large-scale housing delivery, transport investment, and partnerships with the private sector.

Within the new towns programme, Leeds South Bank is the most significant Northern scheme, with capacity for up to 20,000 homes.

The development is expected to build on the city’s economic growth and will be supported by £2.1bn in local transport investment, positioning it as a major regeneration and housing delivery opportunity in West Yorkshire.

A new National Housing Bank will launch on 1 April with up to £16bn in financial capacity, targeting delivery of more than 500,000 homes and aiming to unlock more than £53bn in private investment, and additional support of up to £400m will be made available over the next decade to subsidise lending.

Nationally, each of the seven proposed locations is expected to deliver a minimum of 10,000 homes, with several capable of delivering up to 40,000 homes over the longer term, with developments planned as infrastructure-led communities incorporating transport, schools, healthcare, and green space.

The government also said development corporations may be established to accelerate delivery, drawing on previous models such as those used in Stratford.

Four interim advisers have been appointed to the New Towns Unit, consisting of Lyn Garner, former chief executive of the London Legacy Development Corporation; Ian Piper, former chief executive of the Ebbsfleet Development Corporation; Emma Cariaga, chief operating officer of British Land; and David Rudlin, founding principal of Rudlin & Co and principal author of the UK Government’s National Model Design Code.

Public consultations no each new town will begin imminently, closing on 18 May and a final decision on which new towns will progress expected in summer.

Which towns made it?

The proposed locations, arranged in order of proposed housing quantity, are:

• Tempsford, Bedfordshire: up to 40,000 homes built around a new East West Rail station, linking residents to Cambridge, Oxford, London, and Milton Keynes.
• Brabazon and the West Innovation Arc, South Gloucestershire: up to 40,000 homes at the heart of a research and advanced engineering economy.
• Milton Keynes, Buckinghamshire: building on its history as one of the original new towns, to expand the city by around 40,000 homes and reinvigorate the centre with a new local transport system.
• Crews Hill and Chase Park, Enfield: up to 21,000 homes helping to meet London’s housing need.
• Leeds South Bank: up to 20,000 homes capitalising on the city’s economic momentum and the government’s £2.1bn local transport investment.
• Manchester Victoria North, Greater Manchester: at least 15,000 homes regenerating the heart of Greater Manchester, with a new Metrolink stop connecting residents to jobs across the city.
• Thamesmead, Greenwich: up to 15,000 homes unlocking inaccessible riverside land in London, enabled by the planned Docklands Light Railway extension.

And which were cut?

Six locations have been dismissed from the final list:

• Adlington, Cheshire East
• Heyford Park, Oxfordshire
• Marlcombe, East Devon
• Plymouth, Devon
• South Barking, East London
• Wychavon Town, Worcestershire

Housing secretary Steve Reed said: “People want real change – homes they can afford, local infrastructure that works, and good jobs in thriving communities.

“Our next generation of new towns marks a turning point in how we build for the future.

“From the ground up, we’re planning whole communities with homes, jobs, transport links, and green spaces designed together — so we can give families the security and opportunities they deserve.”

Chancellor Rachel Reeves said: “For decades this country’s planning system has been a direct obstacle to building new homes, ramping up costs and pricing young people out of the housing market.

“Two years ago, I promised that we would grasp the nettle of planning reform. Now we’re planning to build a new generation of new towns, opening up the expansion of our most dynamic cities and raise up new communities.”

Simon Century, National Housing Bank chief executive, said: “From day one, we’ll use deep expertise to back innovative, large-scale delivery = accelerating the supply of high-quality affordable homes and thriving places people want to live.”