A funding package worth £121.8m has been approved to unlock the regeneration of Quayside West at Forth Yards in Newcastle, paving the way for up to 2,500 new homes on the city’s last major brownfield site.
The investment will cover vital remediation, groundworks and infrastructure, tackling complex land issues that have deterred development for decades.
Despite its prime location near Newcastle Central Station and the Quayside, the land has remained derelict for years.
The package has been developed by Homes England in partnership with the North East Mayor and Combined Authority, Newcastle City Council and Network Rail.
Matthew Pennycook, Housing and Planning Minister, said: “This government has a brownfield first approach to development, and we want to see previously used land prioritised wherever possible.
“We are acting to make it easier to build homes on abandoned, disused and neglected urban brownfield sites across the country – boosting housing supply, regenerating communities, and delivering economic growth.”
North East Mayor Kim McGuinness added: “This derelict land is in a great location on the banks of the Tyne yet has stood mostly unused for 20 years, which is a huge waste of potential.
“That’s why we promised to transform areas like this and now that’s exactly what we’re doing. We’ve secured funding so we can get the last brownfield site in Newcastle city centre ready to start building the homes that local people need.
“This won’t be a vast estate, where people can’t access the services they need, but a thriving community with great transport links, green spaces and shops.
“We’re driving the transformation our region needs – from brownfield to beautiful – and today we’re announcing a huge step towards achieving that here at Forth Yards.”
The funding will support the creation of a new development platform and the appointment of a private sector delivery partner, with procurement expected to begin in the coming months.
Public sector partners will continue to drive progress across the wider Forth Yards site.
Quayside West, which has capacity for around 1,100 homes, was acquired by Homes England in 2024.
It is one of the largest parcels of land within the wider Forth Yards area, which is earmarked to become a sustainable, mixed-use neighbourhood, creating a new western gateway for Newcastle.
Cllr Karen Kilgour, Leader of Newcastle City Council, said: “This is fantastic news and shows the Government share our vision for the area.
“Forth Yards is arguably Newcastle’s most exciting development site that in time will provide thousands of new homes and create hundreds of jobs.
“The funding will act as catalyst for development, allowing us to bring forward infrastructure improvements that will open up the site to attract much-needed private sector investment.
“In about 15 years it will have created a whole new part of the city to the west and provided a new community for our residents while adding significantly to our economy.”
Pat Ritchie, Chair of Homes England, added: “This significant investment in Forth Yards demonstrates the Agency’s commitment to transforming previously undeveloped brownfield sites into thriving communities. By working in partnership with Newcastle City Council, the North East Combined Authority and Network Rail, we’re addressing the complex challenges that have held back this strategically important site for decades.
“The new funding package will unlock the potential for thousands of new homes right in the heart of Newcastle, supporting the government’s mission of building 1.5 million homes this parliament.”
