Significant changes are underway in the planning system, with new government policies reshaping how housing targets are met and how local authorities approach development. Here’s what property owners, developers, and local communities need to know about the latest planning developments.
New Towns and Local Housing Targets: A Policy Shift
The government is reconsidering a fundamental aspect of its new towns programme, whether homes delivered through these developments should count towards local housing need (LHN) targets. This represents a notable departure from previous commitments and could significantly affect how councils approach their housing obligations.
Planning Minister Matthew Pennycook confirmed during a House of Lords New Towns Committee hearing that the government is reviewing its approach. Previously, the position was clear: homes delivered through new towns would be “over and above” existing housing targets. Housing Secretary Angela Rayner stated this explicitly in April 2025, with Pennycook having made similar commitments in July 2024, confirming new town housing wouldn’t count towards the national goal of 370,000 homes per year.
The potential policy change would allow new town housing to contribute directly to councils’ housing requirement metrics. Whilst the official stance remains that new towns should supplement rather than replace local allocations, this review opens the possibility of them being included in future LHN calculations.
For local authorities struggling to meet housing targets, this could provide welcome relief. However, it raises questions about whether the overall ambition for housing delivery will be maintained if new towns replace rather than add to existing requirements.
Government to Override Local Opposition to New Towns
The government has confirmed it will proceed with new town developments regardless of local opposition, making clear that nationally driven site selection will take precedence over local concerns. This decisive stance signals the government’s determination to deliver its housing targets despite potential community resistance.
Minister Pennycook emphasised that recommendations from the independent New Towns Taskforce will not be discounted due to local backlash. The taskforce, established last year to identify suitable sites across the country, issued a call for evidence in November 2024 and was expected to deliver proposed locations by July 2025. However, the full report has not yet been received by government.
The delivery framework outlined by Pennycook indicates that oversight authorities will be designated for each development, whether that’s the Secretary of State, a metro mayor, or a local authority. These oversight bodies will ensure development corporations remain transparent and accountable throughout the delivery process.
The taskforce report is now expected “in the summer,” with the government planning to publish it alongside its formal response after the summer recess. This means confirmation of new town locations will be delayed further, though the government’s commitment to pushing ahead regardless of local opposition remains firm.
For communities potentially affected by new town proposals, this approach emphasises the national importance attached to housing delivery and suggests that local planning objections will carry limited weight in final decisions.
Six Regions to Gain Elected Mayors and Enhanced Planning Powers
Six areas across England are confirmed to be establishing new devolved mayoral authorities, having met the legal requirements to proceed. This expansion forms part of the government’s broader Devolution Programme, aimed at transferring more power to local leaders and driving regional growth.
The regions moving forward are:
- Cumbria
- Cheshire and Warrington
- Norfolk and Suffolk
- Greater Essex
- Sussex and Brighton
- Hampshire and the Solent
Each will elect a mayor to lead a new strategic authority with significant powers over housing, transport, and other strategic policy areas.
To support these new authorities, the government has pledged dedicated 30-year investment funds for each region, enabling long-term planning and delivery. A standardised funding model will ensure greater transparency and fairness across all areas.
What This Means for Property Development
These changes signal a fundamental shift towards more centralised control over strategic housing delivery, with national and regional priorities taking precedence over purely local considerations. The new towns programme, combined with enhanced mayoral powers, suggests a determination to meet housing targets through decisive action, even where local support is limited.
For developers, the evolving framework may create opportunities for strategic projects, particularly those aligned with regional growth priorities. The potential for mayoral development orders could offer faster routes to permission for suitable developments, though the criteria for what qualifies as strategically important remains to be clarified.
Local authorities face a changing landscape where their role in strategic housing delivery may be supplemented or overridden by higher-tier decisions. Understanding how new towns might affect local housing requirements will be crucial for planning strategies going forward.
Planning in a Period of Change
The planning system is clearly entering a period of significant change, with the balance between local autonomy and national housing priorities shifting towards more top-down control. Property owners, developers, and communities will need to stay informed as these policies develop and implementation details emerge.
At Wignalls, we continue to monitor planning policy developments and help clients navigate the evolving regulatory landscape. Whether you’re planning a residential extension, a commercial development, or need guidance on how planning changes might affect your property, our planning consultants provide expert advice tailored to your circumstances. Contact us to discuss how these changes might affect your plans.
