What is the single most critical factor or approach required to enable the government’s new towns programme and get Britain building? That was the headline question of an event at Chartered Accountants’ Hall on 28 April, where a panel of industry experts shared insights into how the ambitious scheme should be best set up for success.

As explained in a previous article, the UK government has presented plans to build seven new towns in England – each with at least 10,000 homes. The initiative is seen as a vital means to boost housing supply, lift local economies and create jobs. It will create significant opportunities for businesses – and the chartered accountants advising them.

Chaired by Ros Rowe, Subject Expert for ICAEW’s Construction and Real Estate Community, the event gave members a flavour of the strategic and financial measures essential for success.

New towns can create social value

For Michael Keaveney, Director of Land, Development and Acquisition at Grainger, the single biggest ‘why’ behind the new towns, and the key to the scheme’s long-term survival, is the ability to create socioeconomic value.

In Keaveney’s view, the ultimate recipient of that value will be HM Treasury – which is only fair because, without its support, the projects will simply not materialise.

He said: “HM Treasury was always going to have to invest a significant amount of money in this initiative, perhaps never to be seen again directly.

“But you can put a monetary value on increased availability of social rent housing, better accommodation and hospitals, lower demand for housing benefit and reduced overcrowding and crime statistics.”

All those things feed back to the Treasury, he explained, alongside revenues from corporation and income taxes. He said: “That gives it a saving not just on the benefits bill, but the entire Budget. I don’t think that’s talked about enough.” Accountants can help ensure this value is captured and demonstrated, rather than being potentially overlooked.

Last year, Grainger contributed to the cross-industry report Making Social Rent Homes Viable, highlighting the crucial role of careful cost analysis for delivering much-needed stock into the social rent market. Keaveney stressed that the new towns scheme provides an opportunity to put these practical recommendations into action.

Collaboration and strong governance matter

As Programme Director of Hemel Garden Communities – a development outside the new towns programme which aims to deliver 11,000 homes and 8,000 jobs in Hertfordshire by 2050 – Phillipa Zieba hails effective private-public collaboration as well as strong governance as the keys to success.

In her own work, she said, close collaboration has enabled her team to purge ‘blockers’ from the development process and identify solutions in partnership with local public sector bodies. Timely and transparent reporting can help secure trust.

“That extends to a national level, too,” Zieba noted. “National Highways are part of our Stewardship Group, Homes England attend our board and we have regular engagement with the Ministry of Housing, Communities and Local Government.

As a result, the scheme now has more than 4,000 homes and 53 hectares of land in its outline planning application. “That’s from a standing start when I joined the programme four years ago,” Zieba said.

Infrastructure boosts confidence

Oliver Steele, Cities Studio Leader at consultancy Mott MacDonald, explained that whenever his company masterplans a major project, it rarely begins with questions around housing design. Instead, it starts with focusing on systems engineering and infrastructure.

Steele pointed out: “Infrastructure is important, because it’s one of the strongest ways to provide a state-signalled commitment to the idea that a development will take place.

“Once it exists, infrastructure quickly builds confidence among stakeholders, such as investors and developers, that something is actually happening. That’s critical because, just like the crop of postwar new towns, the vast majority of capital funding for this latest initiative will come from the private sector.”

There is a social dimension, too. “Infrastructure also builds community confidence,” Steele noted. “These developments don’t happen in a vacuum, so it’s essential to win over existing communities in the area. We need residents and families to move in once the projects are completed, and that will partly depend on the attraction of visible, early-stage activities. As such, that work should definitely factor in ‘green and blue’ infrastructure – for example, wetlands, and the connections to place that come from local parks.”

How to get spades in the ground

As Managing Director of chartered surveyors AspinallVerdi, Ben Aspinall has spent two decades working on eco towns, millennium communities and garden cities. He has developed a strong sense of what works and what doesn’t, and believes the success of the new towns initiative hinges on three key areas:

1. Land control

Aspinall said: “When you’re looking at a big, strategic site that will deliver up to 20,000 homes that inevitably requires land assembly. Understanding all the relevant property rights – such as covenants, easements and whether you can secure vacant possession – is critical. Get your property cost estimate in as early as possible, and partner with landowners to understand what they need to incentivise delivery of land.”

2. Finance and funding

“This clearly involves complex financial modelling. However, stakeholders often get bogged down in the numbers – and in the course of a decades-long development, the modelling can become somewhat questionable,” said Aspinall. “You must be absolutely clear on what your model is for. Bear in mind that it’s just a tool – one that enables you to make strategic decisions when combined with strong governance probity.”

3. An effective delivery mechanism

“It’s been several months since the New Towns Taskforce published its report to the government, and now we’re awaiting a final nod on the projects,” confirmed Aspinall”. “There will be an interim period where development corporations will be set up and so on. But that should not delay the start on site. There are plenty of opportunities to get moving and put spades in the ground.” Pragmatic and flexible financial planning can help support this proactive approach.

Towards the end of the event, Keaveney issued a powerful call for a consciousness-raising effort around the urgent need for new homes. “There’s a ‘hearts and minds’ thing, here,” he said. “We must educate the public about why this is a good thing – not the new towns scheme by itself, but new housing as a whole. This initiative is just part of the answer.”

One thing was clear from the event – making a new town happen is not just about the physical building. Strong financial planning, governance and management are equally important.