Izzy Lepone 20 May 2025

Plans to deliver new towns could cost £48bn

Plans to deliver new towns could cost £48bn image
©richardjohnson / Shutterstock.com.

Government plans to build up to 12 new towns in England could cost £48bn, a new study estimates.

A report by WPI Strategy has identified a dozen local authority districts (LADs) that would be suitable for new town development.

The selection of the LADs was informed by economic, spatial and needs-based tests to determine land availability, housing supply gap, property affordability, viability of development and distance to economic hubs.

It also followed public polls revealing the level of community support for the transformation projects.

The data identified Milton Keynes as the highest-ranking LAD.

The 11 other locations identified were as follows: Leeds, South Gloucestershire, Central Bedfordshire, Wiltshire, Huntingdonshire, West Northamptonshire, Mid Devon, South Cambridgeshire, Winchester, East Hertfordshire, and Northumberland.

Each new town could provide over 120,000 new homes, whilst boosting the district’s economy and job market.

To subsidise the development projects, the report suggests an investment of roughly £3.5 - £4bn will be required for each LAD, and should be sourced through government borrowing and private sector funding.

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