Leeds South Bank, the former industrial areas of Holbeck and Hunslet, could be designated a ‘New Town’ under plans announced by the government yesterday (28 September 2025).
If the plans go ahead, it could see 13,000 homes built in the area, with a target of 20% being ‘affordable’ and a further 20% being social lets.
The area hasn’t been defined in detail, but described as being “bookended by cultural anchors with the Royal Armouries Museum to the east and the historic Temple Works, potential future home of the British Library North on its western side.”
Leeds is one of 12 sites across England selected by the New Towns Taskforce and in its response to their report the government has said that South Bank is one of three that “look most promising.”
In Leeds’ favour is a strong economy, the forthcoming mass transit tram scheme and a shortage of housing in the city. One of the problems in the South Bank is that many sites are unviable commercially so some form of capital funding will be necessary.
There is much to be decided on yet, but the taskforce recommends that each New Town is led by a Development Corporation that has powers to assemble land, ensure infrastructure is in place and direct developments. It also says that the they must be backed by government across Whitehall and by the local authority.
Councillor James Lewis, Leader of Leeds City Council, said:
“We welcome the government’s announcement that the South Bank will form part of the New Towns deal.
“This investment clearly recognises the major role Leeds has to play in addressing the economic and housing challenges faced across the country. We see this as a powerful vote of confidence in our city’s ambition and potential, and a perfect complement to the major public investments we have already secured through working closely with partners in central government and with the Mayor of West Yorkshire, Tracy Brabin.
“We look forward to seeing the proposals for South Bank develop further as we work closely with the government on the detail, whilst progressing our existing plans and allowing us to continue to drive forward the delivery of new homes and jobs, and to regenerate neighbourhoods right across the city.”
The decision of which New Towns to progress first is expected in Spring 2026.
You can read the full New Towns Taskforce report here.
Photo; Citu’s Climate Innovation District is highlighted in the report as an example of sustainable homes being built at scale
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The South Bank project has been underway for some time now so how can this possibly described as new? Given that it is just outside the city centre how can it be a town, surely at best it can only be a suburb and even that is stretching things. If the council wants to do something about housing it should stop giving planning permission for yet more and more student accommodation and cater for people who are here 12 months of the year rather than just a few months. Whilst we are at it can we have a definition of ‘affordable housing’?
Thanks for your comments Stephen. The New Towns Taskforce was set up to look at building homes at scale. In their report they say they have “considered not only locations for standalone new towns but also the expansion of existing towns and cities where a new, well-planned and well-connected, communityof scale could meet housing need and contribute to the drive for economic growth.”
Leeds South Bank has not been so much a project, but an identified large scale opportunity, which has seen a range of separate project come forward on different sites. The housing currently being built at Sweet Street West and Midland Mills is not student accommodation, but private rented housing. In fact the only student accommodation I can think of in the area is at Clarence Dock which I think predates the South Bank concept.
‘Affordable housing’ is a technical/legal term used by planners and developers. Homes England (the government agency) define an ‘affordable’ rent as 20% below the market rent. Given that market rents are so high, that hardly makes them affordable. That’s why I always put the term in quotes.
It’s not really a ‘new town’ just a suburban area also like Stephen Id like to know what the affordable rents will be , will services like GP surgeries, supermarket and bank/post office be available for the potential tenants? Hope long term residents are getting first opportunity to move in and not people who will live there short term and then move in elsewhere