London Assembly: New Towns Crucial for Housing Crisis

July 1, 2026

A report published today by the London Assembly Planning and Regeneration Committee has identified new towns as a potential solution to the capital's escalating housing crisis.

The committee's findings suggest that a new generation of developments could help create thriving, well-connected communities, but warns that London risks repeating past planning errors if these projects are not managed with clear standards for housing, transport, and community involvement.

Two potential sites for new towns within London have been identified: Crews Hill and Chase Park in Enfield, and Thamesmead Waterfront in Greenwich. However, the report cautions that without strong leadership and clear planning frameworks, these proposed developments could result in substandard outcomes, including poor-quality green spaces and housing that fails to meet the needs of Londoners.

Beyond Housing: Creating Sustainable Communities

The investigation found that new towns must extend beyond merely constructing homes. They need to establish "long-term civic systems" that encompass job creation, essential infrastructure, ample green space, and foster a strong sense of place. To ensure the success of these ventures, the committee has put forward a series of recommendations. These include guaranteeing high levels of affordable housing, with a particular emphasis on social rent. Furthermore, the report stresses the importance of ensuring transport infrastructure is in place from the outset, embedding high-quality green infrastructure to support climate resilience, and requiring meaningful community co-design from the earliest stages of planning. The committee also calls for new, dedicated government funding and enhanced powers for land value capture.

James Small-Edwards AM, Chair of the Planning and Regeneration Committee, stated, "New towns could be a real tool to help tackle London’s housing crisis, but only if we get them right." He added, "This cannot be just about building homes in isolation. Done properly, new towns should create well-connected, affordable and genuinely liveable communities from day one." The committee's recommendations aim to provide the necessary foundations to ensure these proposed new towns benefit Londoners effectively from their inception.

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