Over 100 proposals have been put forward for the new town locations, with a taskforce set to deliver a shortlist of recommendations by the end of the year.

Whilst we know that SME housebuilders will be integral to reaching this target, I would expect a mix of property types to be in consideration as the housing market continues to adapt to an ever-changing population.

The new towns developed in the post-war era comprised mainly traditional houses and flats, either owned by the local authority or sold privately.

However, as society has changed, so have our housing needs.

Today, we have a more balanced tenure split between owner-occupied, social housing and privately rented homes.

Indeed, within the private rented sector, we have seen further evolution through the rise of the Build-to-Rent (BTR) sector.

Realyse data shows around 100,000 completed BTR units in the UK, making up 2% of the private rented sector (PRS).

Though still developing, tenant awareness and demand for BTR are increasing.

When it comes to these new towns and cities, it’s likely that we will see BTR making up a good proportion of these new properties.

These sought-after homes have typically been aimed at the higher-end of the market, targeted towards young professionals, with high-spec finishes, great amenities and good communal areas.

They’re also concentrated in convenient locations, close to urban centres.

However, the market is evolving, both in terms of where the developments are located and the type of homes delivered.

Today, there are more units in regional locations and more single family homes (SFH), which are individual homes rather than units in a block and are one of the fastest-growing segments of the sector.

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I would expect these to feature strongly in the composition of new town housing stock.

But what does this mean for SME housebuilders?

Whilst most schemes so far have been delivered by larger developers, typically on a forward-funded or forward-purchase basis through funding from large insurance companies or institutional investors, there is growing demand from medium-sized property developers to deliver stabilised income producing institutional-grade mid-size BTR schemes.

Mid-sized developers are increasingly incorporating BTR in their portfolios, either through schemes in their entirety or as a parcel of units within a broader development.

Developers are able to sell a package of Phase I properties as BTR homes, helping to fund the remainder of the development.

To meet demand for this type of housing stock within new towns we expect to see more developers exploring BTR, especially as it’ll be part of the solution to the current housing crisis.

We’re receiving greater levels of enquiries for these types of schemes and recently funded our first development, Talbot Mill in Manchester through Capital&Centric.

The BTR sector holds a pivotal role in shaping the housing landscape of new towns.

Its ability to offer diverse and high-quality housing options, especially in the context of evolving societal needs, makes it a crucial component for addressing the housing shortage.

By bridging the gap between demand and supply, BTR not only provides stability and investment potential but also aligns with the strategic vision of creating vibrant, sustainable, and inclusive communities.

As we move forward, embracing BTR will be essential in ensuring that these new towns flourish and cater to the diverse requirements of future residents.