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Homes England strikes deal with developers on stalled 10,000-home new town
Two developers have signed a “collaboration agreement” with Homes England to deliver 3,000 homes on a stalled major new town scheme.
Keepmoat and Capital & Centric have agreed the tie-up involving the Northstowe project in Cambridgeshire, which is expected to be the biggest new town since Milton Keynes in the 1960s.
The scheme, which is eventually due to have 10,000 homes, was in the spotlight earlier this month when chancellor Rachel Reeves announced it would be one of four stalled sites to be the focus of a new taskforce.
Progress on Northstowe came in for criticism last year over a lack of shops and amenities since the first residents moved into homes in 2017. Around around 3,000 people currently live in 1,400 homes.
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Under Homes England’s new agreement with the two developers, half of the 3,000 homes will be affordable.
This is in line with Northstowe’s existing Section 106 agreement, which stipulates 50% of homes must be affordable. Of these, 40% will be at discounted market sale and 10% affordable rent.
Inside Housing understands that the collaboration agreement requires the parties to work together to draw up plans for the project’s next phase.
However, it is not expected that Keepmoat or Capital & Centric will get extra funding, grants or loans from Homes England.
Keepmoat is already on-site at Northstowe working on a 300-home development known as Stirling Fields. These homes are expected to completed in autumn 2027.
Peter Freeman, chair of Homes England, said: “This collaboration with Keepmoat and Capital & Centric will allow us to further our investment in supporting the local community, helping create new, quality, affordable housing and ensuring this emerging town is a vibrant place to live.”
The town does already have schools, a community centre, playgrounds and allotments, according to Homes England.
Northstowe also faced a setback in 2022 when Homes England-backed modular firm House by Urban Splash went into administration. The offsite specialist had been due to deliver 406 homes at the site on a development known as Inholm.
Another stalled development name-checked by Ms Reeves, Liverpool Central Docks, is getting a £55m grant from Homes England, it was announced last week.
Labour has committed to building a fresh generation of new towns as part of its pledge to deliver 1.5 million homes in this parliament.
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