Milton Keynes should be the first 'new towns trailblazer' – new report

1)    Land availability. The amount of available land that can be developed, taking in key constraints such as Green Belt, flood risk, national parks, Areas of Outstanding Beauty and proximity to inter-city rail and road networks

2)    Proximity to economic hubs. Capturing economic ties, employment opportunities and likely commuting routes to major urban centres

3)    Affordability. Housing affordability pressures based on median house price to earnings ratios

4)    Housing supply gap. The gap between housing need and actual delivery

5)    Land value uplift. The financial headroom available to support infrastructure and place-making costs

In addition to the economic viability criteria, the research analyses the results of a recent MRP poll of 20,000 people conducted by FocalData in 2024 to assess the level of public support for new housing. In Milton Keynes, the average support in the three local parliamentary constituencies amounted to 59%, the highest levels in England.

The report estimates the cost of building a new town and the associated infrastructure would be in the region of £4 billion, with the total project costing up to £50 billion. It assesses different funding models and recommends a public-private partnership model where:

• the government would provide a multi-decade loan to a New Town Development Corporation (NTDC), which would provide a vehicle for finance and have delegated powers over planning
• the NTDC then serves as the channel for wider public investment, from capital grant, to streamline the process of financing schools and other essential public services
• Section 106 is minimised or excluded as land value uplift is taken by NTDC
• significant private sector investment would be provided from a variety of sources, including housebuilders, registered housing providers and build-to-rent investors, as well as commercial interests in the new town, such as from retailers and utility providers.

Sean Worth, Director, WPI Strategy, said, “Our analysis aims to inform the debate by identifying locations where new settlements might be viable and effective, based on contemporary data and planning priorities.

“Public resistance to new development most often stems from concerns about the capacity of local services and infrastructure to accommodate population growth. In terms of reducing opposition to new towns, evidence suggests that integrating essential services and adding tangible benefits, while fostering meaningful community engagement and having transparent planning processes can enhance public support for development generally.”

Tracy Blackwell, CEO, PIC, said: “We are delighted to support this excellent report, which identifies Milton Keynes and Leeds as ideal sites for the first phase of what will be a multi-decade project. But crucially, given the overall cost of the programme, a key recommendation is for a partnership funding and community development approach between the public and private sectors. This model is working very successfully in a number of current regeneration schemes and I think it will underpin the success of the new towns project.”

Chris Curtis, MP for Milton Keynes North and Co-Chair of the Labour Growth Group, said, “Milton Keynes has always been a city built on ambition and smart planning. I saw the benefits of that vision growing up here — great local schools, green spaces on every doorstep, and a city designed to give families a good quality of life.

“But since the Tories shut down our Development Corporation, growth hasn’t always come with the infrastructure our community needs. As the local MP, I’m determined to work with government to bring back that new town ethos — making sure future development comes with the public services and infrastructure that make Milton Keynes such a great place to live.”

Steve Wood, CEO, NHBC, said, "NHBC’s headquarters are in Milton Keynes, so we know this region is an ideal place to launch the next generation of new towns. It is a testament to what real ambition and long-term planning can deliver. Quality must be at the heart of what is built in these new towns, along with a significant increase in the number of skilled workers if the volume of homes envisaged is to be delivered.”

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Notes to editors

Milton Keynes was one of the most well-known examples of a new town. Established in 1967 between London and Birmingham, the town is now home to 280,000 people and ranks among the UK’s top 10 cities outside London for wages and productivity, but has house prices approximately half of those in the Capital. Local political support, alongside the government’s commitment to the Oxford-Cambridge Arc and the East West Rail link, make it an ideal location for a new town.

The government (informally) indicated that “up to 12” new towns may be proposed, so we suggest 12 of the highest-potential LADs for a new town, based on places that meet all our spatial, economic and need-based tests, as well as having local support for new development being over 50% of the population.

We do not identify very specific potential construction sites, but rather the highest-potential LADs where engagement with local authorities and partners might begin as soon as possible to assess sites, deliverability and infrastructure needs.  Our 12 proposed locations, in order of public acceptability, are:  

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