A new report says that while there has been significant progress in regenerating the UK's towns and cities, there is still a population drift towards the countryside, leaving urban areas with acute social problems.

The Urban Task Force report, launched this week in London, says there remains a long way to go in improving the design quality of new housing and in raising the quality of urban life enough to make more people want to live and raise families in urban areas.

In particular, the report argues that the government's Sustainable Communities Plan marginalises the needs of the environment.

Task force chair Lord Rogers said: "Middle-class families are moving out of towns and cities in search of better schools, less congestion and a safer environment. Whilst focusing on sustainable communities we have weakened our stance on urban regeneration."

The report calls for the government to set a target for 75% of new housing to be built on previously developed brownfield land by 2010, and raise minimum housing density to 40 homes per hectare. It also calls for better use of under-used and wasted space within towns and cities to provide more affordable, subsidised housing close to local services, transport links and amenities.

Neil Sinden policy director of countryside campaigners CPRE said: "This is an excellent report - and one the government needs to embrace. We've made a good start on the urban renaissance, but there's still such a long way to go."

"There's a real danger that a fixation on boosting house building as a short term political response to high house prices would undermine that progress, at a time when it needs to be strengthened."