Ward Hadaway supporter blog – Mayoral Development Corporations – why the sudden surge in popularity?
Between 2012 and 2025, just six Mayoral Development Corporations were created – but it is expected that in 2026 at least the same number will be established by the Secretary of State for Housing, Communities and Local Government. In this article, Ward Hadaway’s Public Funding Partner Alexander Rose provides answers to frequently asked questions about Mayoral Development Corporations, summarises some of the lessons that arose from Ward Hadaway’s recent webinar on this subject and explains why there is about to be a surge in the number of Mayoral Development Corporations created.
What is a Mayoral Development Corporation?
A Mayoral Development Corporation (MDC) is a vehicle for the regeneration of an identified site (the Mayoral Development Area) which can be established through a process set out in secondary legislation and involving the Secretary of State. The MDC is a body corporate and can take on property as well as powers to drive forward the regeneration of the area, including the ability to act as the planning authority, to build infrastructure and to deliver development (directly or through partners).
How are Mayoral Development Corporations established?
The process to establish a Mayoral Development Corporation involves the designation of a ‘Mayoral Development Area’ by a Metro Mayor (leading a Mayoral Combined Authority or a Mayoral Combined County Authority) following consultation with prescribed stakeholders and a notice to this effect being submitted to the Secretary of State for Housing, Communities and Local Government. This will lead to an order being created to establish the Mayoral Development Corporation, which is laid in Parliament and specifies the powers and functions of the new organisation.
What powers do Mayoral Development Corporations have?
Mayoral Development Corporations have a wide range of powers including the ability to take on planning responsibilities, acquire property, undertake direct development and offer financial assistance such as grants and business rates relief.
What lessons can we learn from existing Mayoral Development Corporations?
In November 2025, Ward Hadaway hosted a webinar bringing together experts with valuable experience of working either within or alongside existing Mayoral Development Corporations.
Bev Bearne, the Chief Operating Officer for the Hartlepool and Middlesbrough Development Corporations, underlined the importance of having clear roles and responsibilities, as well as the benefits of building close working relationships with local stakeholders.
Stuart Howie, Principal and Devolution Delivery Lead at Avison Young, explained that ‘one size does not fit all’ and emphasised the importance of identifying at the outset, the role that the Mayoral Development Corporation is expected to play in local growth plans and how it is anticipated that the organisation will intervene within the market.
Ian Freshwater, Programme Manager (Major Projects) at the North East Combined Authority provided an overview of the North East Combined Authority’s recent decision to establish a Mayoral Development Zone spanning sites in both Newcastle and Gateshead, providing insight into the evidence base that will be built up ahead of a decision being made as to whether to establish a Mayoral Development Corporation.
The recording of the webinar can be downloaded here.
Which Mayoral Combined Authorities are setting up Mayoral Development Corporations?
There are six existing Mayoral Development Corporations, these are:
- London Legacy Development Corporation (established 9 March 2012);
- Old Oak and Park Royal Development Corporation (established 1 April 2015);
- South Tees Development Corporation (established 1 August 2017);
- Hartlepool Development Corporation (established 27 February 2023);
- Middlesbrough Development Corporation (established 27 February 2023); and
- Stockport Town Centre West Mayoral Development Corporation (established 2 September 2019).
Current plans for new Mayoral Development Corporations include:
- in December 2025, Liverpool City Region Mayor Steve Rotherham announced plans to create Liverpool’s first Mayoral Development Corporation unlocking regeneration across 174 hectares of mainly brownfield land, stretching up from Everton’s Hill Dickinson stadium into the city’s Pumpfields and commercial business districts. It is expected that the MDC will bring in the investment to create 17,500 new housing units and 5 million square foot of additional commercial space;
- in September 2025, West Midlands Mayor, Richard Parker and Birmingham City Council leader, John Cotton announced the creation of a new Mayoral Development Corporation that will encompass East Birmingham and North Solihull, including the £3 billion Birmingham Sports Quarter, £4 billion Birmingham Knowledge Quarter, the new HS2 Curzon Street station and £2 billion Smithfield development;
- in November 2025, secondary legislation was laid before Parliament to establish the Oxford Street Mayoral Development Corporation with the aim of regenerating London’s most famous shopping street;
- in October 2025, Greater Manchester Mayor, Andy Burnham designated a Mayoral Development Area in the Trafford area that will deliver 15,000 new homes (including affordable housing), commercial spaces, and infrastructure improvements around Manchester United’s new stadium; and
- in July 2025, plans were announced for a new Atom Valley Northern Gateway Mayoral Development Corporation creating 20,000 high-quality jobs and providing a £1bn economic boost to parts of Bury and Rochdale.
Why has there been a surge in Mayoral Development Corporations?
Two reasons. Firstly there’s a strong focus on delivery across both Central and Local Government at this time. This is best articulated by the Secretary of State for Communities, Housing and Local Government, Steve Reed declaring that his mantra is “Build, Baby Build”. Mayoral Development Corporations closely align with this focus on delivery.
Secondly, development corporations are effective. The New Towns Taskforce report praises development corporation’s “significant powers to coordinate investment, develop expertise, assemble land and facilitate faster delivery, ensuring joined-up infrastructure and amenities are in place from the outset, as well as providing more certainty about the future path of delivery“.
In terms of impact, the report goes on to state “development corporations have consistently delivered higher build out rates than alternative models” citing data from the Lichfields “Start to Finish” study which found “development corporation-led new towns of 10,000 or more homes tend to have build out rates averaging 600 or more per year; whereas commercially-led large sites with masterplanned schemes (without government coordination) tend to deliver an average of c.150 homes per year, taking an average of six years from submitting a planning application to completing the first homes“. Having a Mayor involved is considered to assist the process, adding additional accountability and helping resolve cross-boundary issues.
Conclusion
The time is right for Mayoral Development Corporations to become major drivers of regeneration and economic growth. However their effectiveness is not a given, but instead will depend on how well tailored these organisations are to solving the issues affecting the relevant Mayoral Development Areas.
Ward Hadaway is the first choice law firm for public authorities engaged in delivering projects, including setting up and running Mayoral Development Corporations. Please do get in touch if we can be of assistance.







