UK Cities Run by Private Companies: A Growing Trend?

Across the United Kingdom, an increasing number of cities and districts are no longer directly managed by municipalities, but by private companies. In these areas, road maintenance, waste collection, and even security are entrusted to private actors. The primary driver of this shift is the financial constraints faced by local authorities.

On the outskirts of London, along the banks of the River Thames, an entire “city” is emerging. Brick-built towers and quiet streets: at first glance, nothing distinguishes this place from any other. However, one thing is markedly different: this new large-scale district is not governed by a municipality, but by a private company.

“Barking Riverside is the largest city in the UK managed by a single private group. The site covers approximately 180 hectares, which is larger than Hyde Park!” explained marketing manager Marie-Angela Giuliani on Swiss public television RTS on Sunday, March 16, 2026. Eventually, up to 50,000 people could live there, equivalent to the population of Fribourg or Neuchâtel.

All services, from roads to waste disposal, are provided by a single company. “It’s like a city within a city,” Giuliani explained. “We want to create a model for housing construction in the rest of the UK, where there is a real housing crisis.”

Former Social Housing Districts Taken Over by Private Groups

This model is not limited to new cities. In some older districts, a gradual privatization is too underway, such as in Thamesmead, on the opposite side of the Thames. A large complex was built in the 1960s to accommodate thousands of social housing units. The district became famous thanks to Stanley Kubrick’s film A Clockwork Orange: some of its most iconic scenes were filmed there.

Due to a lack of public funds, the district passed into the hands of a private group, and its social purpose was abandoned. “There were some beautiful buildings with Brutalist architecture here. Then the land was sold, residents were displaced, and new buildings are being constructed to be sold for profit,” explained a resident of Thamesmead.

According to her, since the transfer to private management, the district has deteriorated, while residents pay additional fees on top of their local taxes: “We pay almost £200 per month for broken doors, broken windows, security problems, and no proper maintenance,” she criticized.

Demonstrations Prohibited

On a large public-looking square, RTS scheduled an interview with Anna Winton, a lecturer in urban planning at the University of East London and a specialist in this phenomenon. However, the interview was quickly interrupted. “Excuse me, do you have a permit to film here?” a security guard asked the cameraman.

This incident, according to Winton, illustrates the abuses of this system: “There are a whole series of things that are prohibited. And not just filming: no bicycles, no rollerblades, sometimes even no right to eat, drink, or take photos. But, most importantly, and this is crucial, any form of political demonstration is prohibited. For me, that means these spaces are not democratic.”

British authorities are facing an impasse, Winton explained. Years of austerity have weakened public finances, particularly after Brexit. “Local authorities simply do not have enough financial resources. It’s a way of saving money. And the private sector claims it can maintain public space at a much higher level…”

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Ghost Town

While this model promises efficiency and cleanliness, it does not work everywhere. In Northstowe, a new town established six years ago north of Cambridge, residents testify to a very different reality. “Here, the bins overflow, the roads are poorly maintained, and the trees are dying” from lack of watering, says independent city councillor Dan Lentell.

But an even more glaring problem is the lack of life. Amidst rows of identical houses, there are no restaurants, and no neighbors chatting. The place resembles a ghost town. “The considerable lesson from our town is that houses, bricks, and mortar are not a place to live, they are just a building. To make a place where people want to live, you need people,” he analyzed. The model is struggling to create genuine living spaces.