Muse and ECF 1,600-home regeneration of Gateshead’s Baltic Quarter

Plans to deliver a major new neighbourhood at the Baltic Quarter in Gateshead have taken a step forward with the signing of a Pre-Development Agreement between Gateshead Council and Muse Places, supported by the English Cities Fund (ECF).

The agreement paves the way for the creation of around 1,600 homes alongside new office space, shops, restaurants and public spaces. The project forms a key part of Gateshead Council’s wider regeneration strategy, launched in September 2025.

ECF, a joint venture between Homes England, Legal & General, and Muse, will now work with the council to develop funding strategies and delivery options for the site.

The Baltic Quarter is located immediately south of Gateshead Quays with the majority of the land owned by the Council. Brown and Company conducted an extensive masterplanning exercise for the Baltic Quarter (image shown here). The aim is to build on the existing success of the area which is already home to Gateshead College, the Northern Design Centre and a community of businesses.

The new development will integrate housing with commercial and leisure facilities, supported by improved infrastructure, landscaping and connectivity to surrounding areas, including Gateshead town centre and the Quays. It is also intended to support both local employment and the attraction of new talent across Tyneside.

The area’s sustainability credentials include a District Energy Network powered by the UK’s largest urban solar farm and warmed mine water, alongside a newly opened 1,000-space car park with future capacity for electric vehicle charging.

Cllr Martin Gannon, leader of Gateshead Council, described the project as transformational. “The Baltic Quarter is a key project for the Council and one we believe can have a transformational impact on the whole of the borough,” he said. “It offers the potential to deliver over 1,600 new homes, both affordable and for market sale, as well as high-quality public spaces and better links to surrounding communities.”

Sir Michael Lyons, chair of ECF, added: “The Baltic Quarter already has a vibrant community and we look forward to working with Gateshead Council to bring their wider vision for the area to life.”

The agreement was made through the Developer-Led Framework managed by Pagabo on behalf of Cumbria, Northumberland, Tyne and Wear NHS Trust. Jonathan Parker, development director at Pagabo, said the framework enabled the council to appoint its partner at pace while maintaining compliance and flexibility.

ECF has delivered regeneration schemes across the UK, combining public sector objectives with private sector investment and development expertise.