Back to the Future: UK Plans New Towns to Tackle Housing Crisis

Northstowe, Cambridgeshire – The UK's newest town, Northstowe, is gradually taking shape amid cranes and scaffolding, offering a potential blueprint for addressing the nation’s desperate housing shortage.

Currently home to around 3,000 residents, Northstowe still lacks basic amenities. However, planners project that within the next two decades, its population could reach 30,000 people.

"I'm really excited about the future," said Jason Benedicic, who moved to the town with his partner and young child in 2020 due to the more affordable space compared to nearby Cambridge.
"There is an amazing community, the people really make the place special," he added, highlighting regular community events, excellent transport links, and open spaces.

Labour Prime Minister Keir Starmer, elected in July last year, has pledged to construct 1.5 million homes by 2029, aiming to alleviate the chronic housing shortage.

Most new homes will be built by expanding existing urban developments, but Starmer has also committed to initiating work on the UK’s “next generation” of new towns.

This vision echoes the post-war Clement Attlee government (1945–1951), which introduced the welfare state and created new towns, eventually giving rise to Milton Keynes, now a city of over 250,000 residents.

Katja Stille of Northstowe planners Tibbalds noted that modern urban design priorities have shifted from car-centric infrastructure to biodiversity, climate resilience, and low-carbon living, while buyers increasingly prefer market towns over sprawling cities.

Located 12 miles (19 km) northwest of Cambridge on former Royal Air Force barracks, Northstowe describes itself as a “healthy” low-carbon community with green spaces, cycle lanes, lakes, and strong transport links.

Currently, the town lacks shops and a medical centre, but plans are in place for a “vibrant town centre” and a health facility.

"It would be nice to have a barber," joked Benedicic, who also became Northstowe’s mayor earlier this year.

Stephen Brewer, who runs the town’s only licensed premises, The Tap and Social cafe and bar, opened in April 2024.

"We’re proud to be pioneers but look forward to more competition," Brewer said.

Britain has faced a housing crisis for several years, with supply failing to meet rising demand. Factors include longer lifespans, high immigration, and soaring property prices, which put home ownership out of reach for many young people.

• Shelter England estimates around 354,000 people are homeless nationwide.
• Starmer aims to deliver 300,000 homes annually during this parliament, far exceeding recent achievements.
• Planning law reforms are underway to streamline construction and override some environmental regulations.

Despite government ambition, there are hurdles regarding land availability, building materials, and skilled labour.

"It is an exciting but ambitious target and challenge," said Tim Wray, Group Development Director at Keepmoat, which is building 300 houses in Northstowe.

A government task force is evaluating over 100 potential sites across England for new towns, each capable of hosting 10,000 homes. Locations are expected to be announced this summer.

The government promises that these towns will be:

• Well-designed, beautiful communities
• Equipped with affordable housing
• Include GP surgeries, schools, and public transport links

With Northstowe leading the way, the UK hopes to create a new model for sustainable, community-oriented urban development.