Government cuts new-town shortlist to seven, as head of National Housing Bank revealed

The updated shortlist includes Tempsford, Leeds South Bank and Crews Hill. Their development is set to begin this parliament after being earmarked as the most promising opportunities.

The government has named four interim advisors to the programme, including two former development corporation chief executives: Lyn Garner (London Legacy) and Ian Piper (Ebbsfleet).

They are joined by Emma Cariaga, chief operating officer of British Land, and David Rudlin, principle author of the government’s National Model Design Code.

Senior appointments at the £16bn National Housing Bank, which aims to bring forward half-a-million homes, have also been confirmed.

Simon Century, chief investment officer of Homes England and former managing director of Legal & General, has been named as the bank’s chief executive.

He 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.”

Peter Vernon, deputy chair of Homes England’s board and former chief executive of Grosvenor, is the new chair of the bank.

Alongside this, the government confirmed that it will add an extra £400m to support subsidised products, which it says will allow the bank and regional mayors to issue loans at lower interest rates. Earlier this month, councils called for access to lower-cost loans in line with registered providers.

The government has also added £234m to funding for mayoral combined authorities across the country to overcome viability obstacles for 8,000 new homes on brownfield land. This will go to authorities in Cambridgeshire and Peterborough, the East Midlands, Greater Lincolnshire, Hull and East Yorkshire, Tees Valley, West of England and York and North Yorkshire.

Steve Reed, the housing secretary, said: “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.”

Rachel Reeves, the chancellor of the exchequer, said: “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.”

Gavin Smart, chief executive of the Chartered Institute of Housing (CIH), said: “CIH supports the government’s ambition to bring forward seven new towns and recognises the progress made since the initial proposals for a larger number of sites.

“The focus on well-planned communities and a strong commitment to affordable housing, including social rent, is essential.

“The launch of a National Housing Bank, alongside additional subsidy to support lower-cost lending, is also a very positive step that could help unlock delivery at scale.”

The government’s planned new towns are set to have at least 10,000 homes. Its target is for 40% to be affordable and 20% social housing, though Mr Reed previously admitted there will be “some flex” on this, depending on viability.

Robert Nettleton, chief executive of housing association Bromford Flagship LiveWest, welcomed the shortlisting of the West Innovation Arc, in South Gloucestershire, as a new town and said it was already working with regional bodies on part of the site.

He added: “We look forward to forming future partnerships that will unlock further delivery in the proposed new town. 

“With the scale, financial strength and long-term commitment to invest, we’re excited by the opportunity to support the delivery of new affordable homes and contribute to creating a place that will enable people to thrive.”