RICS Responds to Government’s Plans for New Towns

RICS welcomes the Government’s update in February 2025 to develop a generation of new towns, a critical initiative to address the UK’s long-term housing needs. While these towns will likely have little impact on the government’s current 1.5 million new homes target, it does present the opportunity to create long-term, vibrant and sustainable communities, with good placemaking, infrastructure and economic development at its heart.

RICS has consistently advocated for a holistic approach to new town development. Based on our research and recent evidence given to Parliament’s Environmental Audit Committee on housebuilding, we urge the Government to prioritise the following fundamental areas:

1. Economic, Utility and Social Infrastructure Must Be in Place

New towns require significant upfront investment in infrastructure, including transport links, utilities, and social services such as healthcare and education. Without this, new developments risk becoming disconnected and unsustainable. The RICS New Towns Viability Report, created at the request of the taskforce, outlines the necessity of a structured, long-term infrastructure strategy to ensure successful town planning and integration.

2. Viability and Sustainability Challenges Remain

The delivery of new towns faces major challenges, including land supply and valuation, development costs, availability of critical minerals and materials, and skilled workforce shortages. Furthermore, our recent analysis presented to Parliament highlights that the construction of 1.5 million homes alone will account for an estimated 8.3% of the UK’s 2033-2037 carbon budget—before even considering additional emissions from new towns. This underscores the urgent need for low-carbon and energy-efficient development strategies and the retrofitting of existing stock.

3. Recognising the Importance of Existing Built Environment and Densification

With 80% of our built environment projected to still be in use by 2050, it is imperative to consider densification and the maximisation of existing infrastructure. Urban expansion and regeneration should be prioritised alongside the development of new towns to ensure the most efficient use of land and resources. Increasing housing density in well-connected areas can help meet housing needs more sustainably, leveraging existing transport networks, utilities, and social services.

4. New Towns Must Be Distinctive, Sustainable, and Economically Vibrant

To ensure long-term success, new towns must go beyond mere housing supply. They should be places with a unique identity, underpinned by sustainable infrastructure, green spaces, and strong economic opportunities. The updated National Model Design Codes must be utilised to ensure high-quality, aesthetically pleasing environments that enhance residents' quality of life.

5. Addressing Land Acquisition and Development Costs

Land availability and acquisition costs remain significant hurdles. RICS supports a transparent and fair approach to land valuation, including the strategic use of Compulsory Purchase Orders (CPOs) where necessary, and RICS professionals and guidance can support with this work. Additionally, the Government must clarify its position on ‘hope value’ to ensure land is secured at a reasonable cost to enable viable development.

6. A Centralised Planning Approach Is Needed

Given the complexities of new town delivery, RICS recommends the establishment of a dedicated, centralised planning body to streamline approvals and work in collaboration with local authorities. Many planning departments are already under significant strain, and without targeted support, the pace of delivery will be severely impacted.

RICS Calls for Action

The Government’s new town initiative is a long-term solution that, if executed correctly, could provide much-needed housing while fostering sustainable and thriving communities. However, success will depend on addressing economic viability, infrastructure planning, and environmental considerations from the outset.

RICS remains committed to working alongside policymakers, industry stakeholders, and planning authorities to ensure these developments are delivered effectively, sustainably, and with lasting value for future generations.