What the industry thinks of Labour’s 12 new towns plan

The government’s recent announcement of twelve new towns across England has made headlines as a bold move to tackle the country’s housing crisis. With housing demand at record highs and supply continuing to lag far behind, the idea of large-scale new developments is eye-catching and politically resonant. But how realistic is it? And what does the construction industry (the people actually tasked with building these homes) think about the plan?

“We are not building enough homes”
Tony Higson, Managing Director at Grayson, welcomes the ambition but stresses the gap between political promises and on-the-ground reality. He points out that housebuilding has actually fallen in the past year, despite Labour’s election pledge to deliver 1.5 million new homes. Without billions of pounds directed towards council and social housing, he argues, those numbers are simply undeliverable.

Higson also highlights the uncertainty facing the private sector, which is responsible for building more than 80 percent of homes in the UK. Many first-time buyers remain locked out of the mortgage market, higher taxes have discouraged the middle classes from moving, and landlords are leaving the sector altogether. These factors have created a lack of confidence across the housing market.

At the same time, the pace of building is well below what is required. Fewer than 200,000 homes are being constructed each year, when the government would need to more than double that figure to keep up with demand. Higson argues that current targets of 300,000 homes a year fall far short of what is required and are out of step with the reality on the ground. In his view, only a credible, joined-up housing strategy that restores confidence in the private sector while supporting public housing will deliver meaningful change and prevent another generation from being locked out of home ownership.

The Road Ahead
The creation of twelve new towns has the potential to transform housing supply and ease pressure on communities across England. Yet as Tony stresses, without serious investment, restored confidence in the private sector and a clear long-term strategy, the housing crisis will continue.

For now, the new towns plan represents a promising vision. Turning it into reality will depend not only on political will, but also on the expertise, skill and commitment of the construction industry.