A third urban development corporation is set to be established after a government select committee gave proposals for the Milton Keynes growth area the green light.

The House of Lords select committee recommended on 4 November that a UDC be set up in west Northamptonshire, covering the three towns of Northampton, Daventry and Towcester.

The UDC is a government planning tool that is intended to speed up the regeneration process, particularly in areas where dealing with multiple landowners slows down the planning system. This would include the Milton Keynes area, which has a lot of brownfield sites and different landowners.

The government sees UDCs as vital in clearing the way for plans to build an extra 200,000 houses in the South-east by 2016. The two existing UDCs are in the Thames Gateway and Thurrock.

A spokesperson for the ODPM confirmed the select committee’s recommendations but cautioned that the UDC would only be ratified if it passed first through the Commons and then the Lords.

The forming of a Lords select committee was an unusual step and came in response to local opposition, particularly in the Daventry area. A number of groups petitioned against the UDC as it is perceived to be less accountable than the normal planning route.