UK Government Seals £150m Deal for New Garden Communities

In a significant move to address the UK's housing crisis, Angela Rayner, the Housing Secretary, has announced a £150 million partnership with Barratt Developments and Lloyds Banking Group to construct new garden towns and villages across the country. This initiative, known as the Made Partnership, aims to create sustainable communities reminiscent of the garden city concept pioneered by Ebenezer Howard in 1898.

The Made Partnership, set to operate for at least two decades, will act as a master developer for residential projects ranging from 1,000 to over 10,000 homes. This collaborative effort between the government and private sector echoes the post-war policies of Clement Attlee's Labour government, which led to the creation of new towns like Milton Keynes in 1967 and Welwyn Garden City in 1920.

The government has set an ambitious target of building 1.5 million new homes over the next five years. To achieve this, ministers have reintroduced compulsory housebuilding targets for local authorities and are focusing on developing "grey belt" areas, such as disused petrol stations and car parks. This approach aims to balance urban development with the preservation of green spaces, a key principle of garden cities.

Matthew Pennycook, the housing and planning minister, emphasized the importance of this partnership in ramping up housing supply and boosting economic growth. He stated:

"A failure to ensure the development system is working properly has held back the delivery of tens of thousands of new homes over recent years and this Government will work in partnership with all those who are focused on turning things around."

The Made Partnership plans to develop not only residential areas but also retail, leisure, and commercial spaces. This holistic approach aligns with the Town and Country Planning Association's definition of a garden city as a "holistically planned new settlement" that enhances the natural environment while offering high-quality affordable housing.

David Thomas, CEO of Barratt Developments, expressed commitment to delivering millions of new homes over the next 10 to 20 years. Charlie Nunn, CEO of Lloyds Banking Group, highlighted the importance of cross-sector collaboration in addressing the urgent need for housing.

While the partnership shows promise, financial analysts at Royal Bank of Canada predict that completions from the Made Partnership are unlikely before 2028. This timeline reflects the complex nature of large-scale development projects and the need for careful planning to create sustainable communities.

As the UK continues to grapple with its housing shortage, this innovative partnership between government, private developers, and financial institutions represents a significant step towards creating the homes and communities needed for future generations.