Think tank urges government to give City Hall control of railway land to boost homebuilding

Centre for Cities says low density of housing adjacent to travel hubs is a significant blocker to economic growth, reports Kumail Jaffer, Local Democracy Reporter

City Hall (credit GLA) and (inset) Sadiq Khan

Handing over control of Network Rail land in London to Sadiq Khan could see 535,000 homes built around stations in inner boroughs and over a million across the city, ministers have been told.

Chronically low density of housing adjacent to travel hubs compared to G7 peers such as Paris and Tokyo is a significant blocker to economic growth, according to the Centre for Cities think tank.

Prime Minister Andy Burnham has backed “higher density residential development” in his bid to solve Britain’s housing shortage, while the government has recently introduced new “minimum density” requirements for new developments near well connected train stations.

However, railway stations are primarily under the control of Network Rail, which is a body concerned with transport rather than housing.

This means that opportunities to invest by building densely at suitable locations around the stations can be delayed or missed. A key example of this is Manchester Mayfield next to Manchester Piccadilly Station, a site that has sat derelict for decades.

In contrast, handing over control of stations to bodies like the Greater London Authority (GLA) would allow local leaders to use mayoral development corporations (MDCs) and development order powers to regenerate land around stations densely.

“Control of their stations and the land around them will be the first step to regeneration for many urban neighbourhoods,” the report, released today (Wednesday 2nd), reads.

“Mayoral control of stations and surplus land adjacent to them is the greatest opportunity for devolution to help cities to densify around more stations than they are today.”

Solving this “density gap” around urban stations would reduce Britain’s housing shortage as a whole by around 25%, as well as cutting commute times and rejuvenating high streets.

Anthony Breach, director of policy and research at Centre for Cities, said: “Building a lot of homes around existing stations is one of the most effective ways to boost city economies. In a low growth economy like Britain, it is one of the most glaringly obvious problems to fix.

“Going big on homes around stations will make a significant dent in the housing shortage. It’s worth around a million homes in Britain. It makes public transport far more efficient and cuts commuting times. It expands the labor market which is good for productivity. It regenerates areas that residents have seen fall into disrepair.

“Fixing this uniquely British problem will deliver significant returns. But the government must also be clear eyed that without speedy planning reforms and rail devolution – good intentions will get stuck in the swamp of delay, red tape and inter-agency bureaucracy.”

The report recommends the government create a ‘fast track’ to give mayors control of stations without having to go through the “full rail devolution” application process that could take years.

“Securing greater local control more quickly makes it much easier for mayors to pursue densification and more likely that the Government can achieve its wider urban housing agenda,” the authors added.

“Mayors would be able to assume control of stations on a rolling basis, starting with stations identified as simpler and with promising development opportunities by the audit, before expanding their scope to more complex stations at a pace that suits the mayor and the regulator.”

With control, mayors can utilise MDCs – like Sir Sadiq Khan has used in Old Oak and Park Royal, and Oxford Street – to deliver major regeneration projects on underused land around stations. They could also used mayoral development orders (MDOs) which can help developers proceed faster through the planning process to densify current buildings.

Sem Moema, Labour’s housing spokesperson on the London Assembly, told the Local Democracy Reporting Service (LDRS): “Transferring this land could unlock thousands of homes Londoners desperately need.

“It would also help us make better use of land across the capital and build on the mayor’s work to deliver homes on public land.

“We should use public land to build the homes London needs and help fund the infrastructure needed to support them.”

A spokesperson for Khan said: “The mayor recognises that Londoners need more homes in the right places, with connections to jobs and other local services.

“His draft new London Plan makes clear that housing delivery and economic growth is only possible with investment in transport and other crucial infrastructure. That’s why he continues to make the case for transport projects and rail devolution across London that could bring substantial benefits to local communities, in addition to supporting significant housing delivery.

“The mayor will continue doing everything in his power to drive vital investment and sustainable growth across the capital as we build a better, fairer, more prosperous London for everyone.”

A spokesperson for Platform4, wholly owned subsidiary of Network Rail established to lead the regeneration of surplus railway land across the UK, added: “Platform4 was established in November 2025 to unlock rail-led and rail-adjacent brownfield land at pace, enabling well-connected homes, workplaces and public value across the country.

“New homes have been established as a strategic priority under GBR, embedding housing delivery into the heart of the rail network’s future direction and supporting faster, more joined-up decision-making on the release of land for development.

“Over the last five years, Network Rail’s property development team and LCR, now both part of Platform4, have unlocked 33,000 new homes. “

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