By Niamh Ruane and Richard Cook

September 2025 saw the publishing of the Governments New Towns Taskforce Report. The New Towns Taskforce was commissioned by the UK government in July 2024 to identify locations for a generation of “new towns” in England, aiming to address housing shortages, unlock economic growth, and provide a model for large-scale, high-quality development.

The report responds to the urgent need for more homes, improved productivity, and better infrastructure, noting that housing shortages are limiting labour mobility, worsening public health, and constraining economic potential.

The New Towns will build towards the Government’s target to deliver 1.5 million homes over the five-year parliamentary term, whilst also helping to address the economic and social costs of housing shortages: high house prices, reduced labour mobility, delayed family formation, and increased public spending on homelessness. The New Towns are expected to:

  • Deliver at least 10,000 homes per site, with a combined potential of 300,000 new homes – 20% of the Government’s housing target.
  • Prioritise locations where housing shortages are constraining economic growth.
  • Provide a minimum of 40% affordable housing, with at least half for social rent.

The Taskforce shortlists 12 locations for new towns, chosen for their potential to unlock economic growth and meet housing demand. These include a mix of standalone settlements, urban extensions, and city centre redevelopments. The recommended sites are:

  1. Adlington, Cheshire East (serving Greater Manchester and Cheshire)
  2. Brabazon and the West Innovation Arc, South Gloucestershire
  3. Chase Park and Crews Hill, Enfield
  4. Heyford Park, Cherwell (Oxfordshire)
  5. Leeds South Bank
  6. Manchester, Victoria North
  7. Marlcombe, East Devon
  8. Milton Keynes (Renewed Town)
  9. Plymouth
  10. Tempsford, Central Bedfordshire
  11. Thamesmead, Greenwich
  12. Worcestershire Parkway, Wychavon

Socio-Economic Benefits of delivering the New Towns

  • Boosting Economic Output – through improved housing affordability, supporting labour market access and directly benefiting the construction sector through the creation ofthousands of construction jobs.
  • Unlocking Investment –attracting both public and private investment by providing long-term certainty around planning and infrastructure.
  • Supporting Business Creation and Employment – new towns will include employment floorspace, creating new jobs for local residents and stimulating local economies and business growth. The 300,000 homes could also generate household expenditure of over £8billion per annum.
  • Addressing housing shortages – providing homes for over 600,000 people including the delivery of affordable housing.
  • Creating Balanced and Inclusive Communities – through the delivery of social infrastructure and ensuring communities have a sense of place and identity.
  • Improving Health and Wellbeing – well designed towns promote healthy and safe living environments, with accessible green spaces, recreational facilities and active travel networks.

Pegasus Group Economics
The Economics team at Pegasus Group can assist with a large range of outputs for planning applications including

  • Socio-Economic benefits statements and infographics.
  • Socio-Economic ES Chapters.
  • Social Value Reports.
  • Health Impact Assessments.
  • Employment and Skills Plans.
  • Health and Wellbeing Statements.

For further details please contact, Richard Cook, Senior Director of Economics (Richard.cook@pegasusgroup.co.uk) and Niamh Ruane, Senior Economic Analyst (Niamh.ruane@pegasusgroup.co.uk).