Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 24
24
Acknowledged
Announce new funding for development corporations, mandating Social Rent priority and capital access.
Recommendation
At the Autumn Budget 2025, the Government must announce new funding to establish the development corporations, so they can commence land acquisition on the first sites without delay, and complete this work by spring 2026. The development corporations must be mandated to prioritise the delivery of homes for Social Rent within the 40% affordable homes requirement, rather than other types of affordable housing. Development corporations must be granted comprehensive planning powers and access to capital funding to fulfil this objective. (Recommendation, Paragraph 115)
Government Response Summary
The government states it is committed to a gold standard aim of 40% affordable housing with an emphasis on Social Rent and will work with delivery vehicles to support implementation. The need for development corporations to take on planning powers will be assessed case-by-case. They highlight existing and future funding sources, but don't commit to specific new funding at the Autumn Budget 2025.
Government Response
Acknowledged
HM Government
Acknowledged
62. The Government has been clear that new towns will deliver much needed quality and genuinely affordable housing. The Government is committed to a gold standard aim of 40% affordable, with an emphasis on Social Rent. The Department will work with delivery vehicles, including development corporations, to support implementation. 63. The Department is also developing mechanisms to facilitate the implementation of placemaking principles, including through guidance for delivery vehicles. Where appropriate, development corporations will be essential to delivery of new towns, not least for their ability to unlock planning challenges and provide greater certainty. Nonetheless, the need for development corporations to take on planning powers must be assessed on a case-by-case basis, taking account of the delivery barriers for each location, and is subject to public consultation. 64. It is vital that new towns, including those led by development corporations, are appropriately funded. Where development corporations are found to be the most appropriate vehicle through which to delivery New Towns, there will need to be resource funding available for the costs associated with running development corporations for new towns. Delivery will also be backed by funding across the Government’s landmark housing programmes, such as the £39bn Social and Affordable Housing Programme, hundreds of millions of grant from the National Housing Delivery Fund, and additional capital funding managed by the National Housing Bank. We will also work closely with other departments and regulators to ensure new towns will be factored into their future spending plans, ensuring they have the utilities, transport, and social infrastructure needed for the community to thrive.