< Back to Finance and Delivery Guide
The policy and legislative framework for planning and delivering development at scale is evolving rapidly. Government policy is increasingly recognising the importance of new Garden Cities, while recent legislation is creating new opportunities for councils and strategic authorities to plan for, assemble land, partner, invest and establish delivery vehicles.
This section summarises the key policy and legislative developments most relevant to planning and delivering new Garden Cities and other large-scale new communities. It covers the National Planning Policy Framework and relevant government programmes, followed by the legislative frameworks that can support delivery, including development corporations and compulsory purchase. It also highlights the emerging role of Spatial Development Strategies, devolution and Mayoral Development Corporations in identifying and supporting opportunities for growth.
Government policy
National Planning Policy Framework
Please note: the below provides a brief summary of some key, relevant NPPF policies, rather than a comprehensive review of all relevant policies.
Policy HO4: Land for strategic site development of the National Planning Policy Framework 2026 sets out the need for local and strategic plans to identify suitable locations for large scale development that can be supported by infrastructure and facilities, will be sustainable, address environmental opportunities and constraints set out in Local Nature Recovery Strategies. Policy HO4 (2) provides a high level framework for setting expectations for the quality of places, making an assessment of build out rates, and requiring a mix of tenures to meet the needs of different groups. As under the previous NPPF, it also includes the TCPA’s Garden City Principles as an example of placemaking principles that may be relevant to strategic sites.
Policy HO13: Build out of residential and strategic sites, relates to development management for these strategic sites, stating the need for developments to have a reasonable prospect of delivery at application stage. It urges Local Planning Authorities to consider the timing of development and whether this could be controlled through planning conditions where appropriate. Policy HO13 (3) also introduces a new set of considerations intended to create flexibility for large-multiphased outline planning permissions. It states that the consenting framework for a strategic site, should “Set out the parameters and requirements for the design, infrastructure and other features of the development (including the quantity and type of affordable housing to be provided)”. However, it requires this to be tailored to the scale of development, i.e. proportionate, and also urges the need to “be flexible enough to respond positively to changing circumstances as phases are brought forward, including changes to housing need, infrastructure requirements, viability and design”.
The Government stated in the December 2025 consultation document that Policy HO13 “reflects concerns that the current system demands excessive detail and certainty for large scale, multi-phase schemes up-front, which can make the delivery of these schemes challenging.” In its August 2026 consultation response, Government stated that its aim is to “clarify the balance between securing key requirements up-front and allowing appropriate flexibility as phases come forward. The policy makes clear that consenting frameworks should establish parameters for matters including design, infrastructure and affordable housing, while ensuring that the level of detail is proportionate to the scale and phasing of development.” The policy also includes a new requirement to ensure that development proposals which would be inconsistent with emerging plans for large scale development can be resisted, to better safeguard these development opportunities, in line with Policy DM4 (2) on prematurity, which sets out clear criteria for prematurity for sites at the strategic scale.
Spatial Development Strategies
Spatial Development Strategies (SDSs) are new subregional development frameworks which Strategic Authorities are required to prepare for their areas as set out in the Planning and Infrastructure Act 2025. Government continues to clarify the legislative and policy framework for subregional spatial development strategies against the backdrop of ongoing local government reorganisation but aims to have these produced by 2029. However, SDSs cannot themselves allocate sites for development – only outline the opportunities and designate broad areas of search that could be considered for new communities. While they can begin to establish some of the evidence base around housing need, they will not be able to provide the detailed viability or deliverability evidence, or to consider the environmental or other impacts of schemes in the way that local plans can.
NPPF Policy PM1: Spatial Development Strategies states that SDSs should identify “broad locations for growth and regeneration, including new settlements, major urban extensions, major cross boundary development and other key locations with the potential for significant new homes”. It also makes clear that broad locations should extend over any strategic sites already in adopted Local Plans, meaning that SDSs must at least consider the potential for further growth at major development sites, particularly over the mandatory 25 year plan period they must cover. The glossary defines such sites as typically being those above 1,500 homes across multiple phases.
NPPF Policy PM2: Local Plans however, states that local plans only required to cover a 10 year plan making period as a minimum, far shorter than most strategic site trajectories, and previous references to a 30 year plan period where strategic sites are involved have been removed. This appears to emphasize the role of SDSs in identifying appropriate locations for strategic sites, whilst still enabling Local Plans to identify these in their own right. Further guidance will also be published to further support authorities operating across the two tiers, including on the relationship between broad locations identified in SDSs and subsequent site allocations in local plans. However, there appears to be some tension between the longer time horizons required of SDSs and their strategic nature, which will span beyond typical viability considerations, and the shorter minimum time horizons now required of local plans.
New Towns programme
The current government’s draft New Towns programme is limited to supporting a small number of places to deliver growth at a scale over and above 10,000 homes. Whilst not reflective of government policy, the New Towns taskforce identified that “This is more than the private sector is currently bringing to the market independently and will facilitate a new system-wide approach to building large settlements”. Even so, government stated in its initial response that “We are determined to get spades in the ground on at least three new towns in this Parliament and the government is prepared to progress work on a far larger range of locations if it proves possible.”
And further to this, that “”Our ambition is that new towns will act as exemplars for integrated planning and funding, setting a model for future large-scale development that will change the way that housing is delivered in this country, beyond the programme itself.” The New Towns Taskforce have stated that of the 100+ sites submitted to the New Towns Programme for consideration, many represented highly credible large-scale developments, many of which may come forward in spite of not being selected for this programme, including via future government support. The Draft New Towns programme confirms that there remains “strong potential to deliver housing in places that are not taken forward as new towns”, particularly the six shortlisted reasonable alternative sites.
Garden Communities programme
The Garden Communities Programme, launched by government in 2018, provided a framework for supporting ambitious, locally-led proposals for new garden communities at scale. It was intended to help councils move beyond simply allocating land for housing by providing tailored government support to develop the planning, delivery and long-term stewardship arrangements needed to create successful new communities.
The programme prioritised Garden Towns of more than 10,000 homes, while also supporting smaller Garden Villages where proposals demonstrated particular strengths, such as exceptional quality, innovation or potential for future expansion. It did not prescribe a single model, but emphasised distinctive, mixed-use and sustainable communities, with high standards of placemaking and long-term stewardship embedded from the outset.
Although the programme is no longer open for bids, its approach remains relevant to councils considering large-scale development. In particular, it demonstrated the value of early government engagement, dedicated capacity and specialist support in helping local authorities develop ambitious proposals and overcome the barriers to delivery.
Please get in touch with your Homes England contacts for more information.
Devolution
Government has also stated its ambition to further devolve powers around housing, planning, transport and funding in all areas, including some currently held by Homes England, to align with those held by the Mayor of London.
Established Mayoral Strategic Authorities can already published a statement of strategic priorities for social and affordable homes funding in their areas, shaping the tenure mix and identifying priority sites such as new Garden Cities for funding. Homes England will work closely with EMSAs via Strategic Place Partnerships to support delivery of their priorities through assessment of funding bids.
Mayoral authorities, once fully established, will also have the power to designate Mayoral Development Corporations, a number of which have already been established, which could then prepare a local plan specific to a site, thereby designating it for development, or take forward existing consents for delivery as has been done at Ebbsfleet. See Case Study 1 for more details.
Relevant legislation
Development corporations
New Town Development Corporations, Mayoral Development Corporations and Urban Development Corporations were historically different models created with different powers and for different purposes. Recent changes to legislation under the Levelling up and Regeneration Act 2023 and Planning and Infrastructure Act 2025 however have created a more level playing field between the five types of development corporations that can be established by the Secretary of State and Mayors, although Levelling up and Regeneration Act Section 172 which enables locally initiated and led development corporations has yet to commence. All development corporations must now also have regard to sustainable development and climate change mitigation and adaptation. The government has stated that its objective in amending legislation was to create a clearer, more flexible and robust framework for the operation of Development Corporations, reflecting the emerging thinking of the New Towns Taskforce.
For further detail about the different types of development corporations, including a downloadable resource comparing different types, see the Development Corporations page in this guide.
Compulsory purchase and hope value
Please note: compulsory purchase is a complex area of legal practice with extensive caselaw and professional advice should always be sought.
Compulsory purchase in the context of delivering new Garden Cities
In some circumstances, compulsory purchase can be a key delivery tool to unlock large housing schemes with public sector intervention to support land assembly. Land assembly involves a delivery vehicle or master developer taking on the risk of combining multiple land holdings into a single plot to enable a road, health centre, school or other vital part of a scheme to be delivered. It is particularly relevant where land ownership is fragmented or in existing use, has ransom strips or other title defects, and where lengthy negotiations on acquisition prevent the timely and coordinated delivery of transport or social infrastructure. Local delivery vehicles may utilise compulsory purchase in different ways, but most often can negotiate with landowners without resorting to formal measures. CPO powers then act only as a backstop for these negotiations, helping to bring landowners to the table and align land values with policy requirements.
Directions to disregard hope value
The Planning and Infrastructure Act 2025 builds on reforms introduced through the Levelling Up and Regeneration Act 2023, which amended compulsory purchase powers for both development corporations and local authorities. Under section 14a, these changes allow acquiring authorities to apply for a direction to disregard ‘hope value’ associated with potential future development where land is being acquired for public infrastructure and facilities such as healthcare, education and affordable housing and a series of legal tests are met. This would in some cases restrict land values to their existing, e.g. agricultural, use value. Responsibility for granting these directions now falls within the remit of Planning Inspectors, which should, in principle, make the process more accessible to authorities. A robust funding, viability and planning case will still be required to demonstrate scheme delivery and the public interest case. More information is available in this government factsheet.
Conditional CPOs
New conditional CPOs could further streamline the process by allowing CPOs to be approved in principle, subject to requirements such as securing final funding or obtaining planning permission. The order would remain inactive until these conditions are met and discharged, giving public authorities, developers and investors greater confidence that land assembly can proceed alongside the wider development process. This could be particularly relevant to new community schemes, where land assembly may need to begin well in advance of final investment decisions, planning consent or infrastructure funding. A conditional CPO could secure the acquiring authority’s position over land at an earlier stage, while avoiding the need to complete the full CPO process before key project conditions are satisfied. This could help to hold land at, or closer to, existing use value, reducing the risk of speculative land value increases and providing greater certainty over the cost of land assembly, including where land ownership changes during the development process.
Government position on CPO reform
Although these revised approaches to CPO have yet to be tested through the courts, the clear policy intention is to streamline CPO processes where delivery is in the public interest and where landowners are not collaborating. Government has stated its aim to ‘improve the CPO process and land compensation rules to enable more effective land assembly through public sector-led schemes’ to “speed-up and lower the costs of the delivery of housing, infrastructure, amenity and transport benefits in the public interest.” They have also stated “”We believe it is right to provide a way to remove hope value from the assessment of compensation when schemes are delivering benefits for communities which are in the public interest.” By reducing the value attributed to land required for public infrastructure on major sites, the reforms aim to support more sustainable and effective placemaking outcomes and speed up the delivery of schemes.
Next section, Local delivery vehicles: principles for success >
This toolkit is kindly supported by:
Last updated:


