Introduction
The government is taking decisive action to address the housing crisis by proposing new development corporations to act as master developers. This initiative supports the ambition to deliver 1.5 million new homes. To aid this, the Ministry of Housing, Communities and Local Government (MHCLG) has established the New Towns Taskforce, an independent expert panel.
The New Towns Taskforce report, published in September 2025, identified 12 potential new towns and proposed delivery via development corporations. The report argues that development corporations are the most suitable delivery vehicle, recommending they have Planning Authority powers.
Temsford in Bedfordshire is considered a promising first site, partly due to its proximity to existing and planned rail routes.
The House of Lords Built Environment Committee’s report, New Towns: Laying the Foundations, published in October 2025, includes a chapter on governance and stewardship of development corporations. It states: “Development Corporations should be the default governance and delivery structure for new towns and expanded settlements and should be used in all but exceptional cases.”
The Institute for Government’s Devolution and Regeneration Report, published in December 2024, outlines the case for mayoral development corporations, reviewing their history, operating models, and governance mechanics.
Currently, only a few mayoral development corporations exist, with the London Legacy Development Corporation serving as a successful example. More are expected as devolution expands.
Fundamentals for Establishing a Modern Development Corporation
To ensure these urban development vehicles exemplify best practice, they must be founded on clear principles. Having recently helped establish a circa 400,000 home multi-site development corporation outside of the UK, I outline twelve key fundamentals as a blueprint for success:
- Vision and Mission
A development corporation must define a compelling vision and mission, including targets for social, affordable, and market housing. This vision should reflect local aspirations and support regional economic growth, providing diverse housing types and tenures. - Market Analysis and Feasibility
Comprehensive market research should assess demand across residential, commercial, civic, and mixed use assets. Feasibility studies must evaluate financial, environmental, and social viability, ensuring sites align with infrastructure and gain local support. Job creation, business growth, and transport connectivity must also be considered. - Regulatory Context
Understanding statutory powers and planning frameworks is essential. This includes aligning with recent planning reforms and clarifying how planning control is exercised, especially if within the corporation’s remit. - Financial Strategy
Detailed budgeting should underpin each phase. Funding from public-private partnerships, grants, loans, and private capital must be secured, with robust financial oversight. Strategic use of public funds for infrastructure, particularly brownfield, transport, utilities, and public services, should be paired with land acquisition and value capture to reduce long term reliance on government funding. - Project Delivery and Management
Professional development, urban planning, and project management are crucial. Dedicated teams should prepare master plans, while a Project Management Office (PMO) oversees implementation, ensuring deadlines, quality, and budgets are met. Design standards ensure consistent, high quality development. - Skills and Capacity
To become an employer of choice, corporations must invest in a skilled workforce supported by external consultants and engage delivery partners through robust capacity building strategies. - Infrastructure Planning
Planning should align with the government’s long-term infrastructure strategy, covering transport, utilities, waste, water, and digital networks. Social infrastructure, including schools, healthcare, community spaces, and green amenities, should be delivered concurrently with or before housing to ensure liveable neighbourhoods. - Community Engagement
Transparent public engagement is critical. Regular consultation with residents, businesses, and stakeholders ensures the master plan meets local needs and priorities. - Inter Authority Collaboration
Strong partnerships with local authorities ensure alignment with local plans. Early engagement with transport, health, education, and utility bodies is vital. Long term stewardship models must be established to sustain services and infrastructure. - Sustainability, Resilience, and Innovation
Design and construction must support the UK’s net-zero goals. Plans should address climate resilience and economic adaptability. Modern Methods of Construction (MMC) and SMART technologies can accelerate delivery and enhance quality. - Marketing and Identity
A strong, values led brand positions the new town competitively. Marketing should attract residents and investors, showcasing the town’s offer and long term vision. - Monitoring and Evaluation
Success should be measured via clear Key Performance Indicators (KPIs). Master plans must remain adaptable based on monitoring, community feedback, and pilot initiatives such as new financing models or build to rent schemes.
A Blueprint for Success
Lessons from previous development corporations and recent mayoral development corporations can guide this new generation of development corporations. Milton Keynes Development Corporation, arguably the UK’s most successful urban development corporation, provides a well-documented example.
Milton Keynes was established in 1967 and dissolved in 1992 upon completing its mission. It had powers to compulsorily purchase 22,000 acres of farmland, acted as its own planning authority, and managed infrastructure and social amenities, including public housing.
In addition to the outlined fundamentals, lessons should also be drawn from Milton Keynes or other similarly completed new towns so that best practice can be developed and included in establishing new development corporations.
By following best practices from the UK’s strongest examples and adhering to the twelve core fundamentals, development corporations can support the government’s housing goals, delivering sustainable, inclusive communities while raising standards for future urban development across the UK.