£121.8 million funding package for Newcastle Forth Yards regeneration

A major regeneration project in Newcastle has moved forward with the approval of a £121.8 million funding package aimed at transforming the long-derelict Quayside West site at Forth Yards into a new mixed-use community.

The funding, approved by the UK Government, will support critical remediation, groundworks, and infrastructure improvements on the brownfield site. These activities are expected to address longstanding land issues that have hindered investment and development, despite the site's strategic location near Newcastle Central Station and the city centre.

Homes England developed the business case for the funding in collaboration with the North East Mayor and Combined Authority, Newcastle City Council, and Network Rail.

Housing and Planning Minister Matthew Pennycook highlighted the government’s commitment to prioritising brownfield sites: "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."

The Quayside West plot alone has capacity for around 1,100 homes and was acquired by Homes England in 2024. It represents one of the largest pieces of land within Forth Yards, an area earmarked for a sustainable, mixed-use neighbourhood serving as a new western gateway to Newcastle.

North East Mayor Kim McGuinness said the funding marks a significant step in unlocking the site’s potential. "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," she said. "This won’t be a vast estate, but a thriving community with great transport links, green spaces and shops."

The funding will enable the creation of a development platform and support the appointment of a private sector delivery partner. Procurement is expected to begin in the coming months. Public sector partners will continue to drive progress across the wider Forth Yards area, with a view to ultimately delivering up to 2,500 homes.

Newcastle City Council Leader, Cllr Karen Kilgour, described Forth Yards as "arguably Newcastle’s most exciting development site," noting the long-term vision includes thousands of new homes and 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," she said.

Pat Ritchie, Chair of Homes England, underscored the agency's commitment to transforming underutilised land. "This significant investment in Forth Yards demonstrates the Agency’s commitment to transforming previously undeveloped brownfield sites into thriving communities," Ritchie said.

The announcement follows recent progress at Forth Goods Yard, another parcel within Forth Yards, where Network Rail Property is preparing to submit plans for up to 600 homes. The site is one of the first regeneration opportunities for Platform4, a new property company focused on redeveloping rail-adjacent land.

Robin Dobson, Group Property Director at Network Rail, welcomed the funding as a critical enabler. "Forth Goods Yard has been landlocked for decades and the combined efforts of Network Rail Property, Homes England and Newcastle City Council will enable the transformation of this strategically important site for generations to come," he said.