The Quayside West scheme at Forth Yards in Newcastle has secured a £121.8m funding package from the government.
The financial package, which was developed by Homes England in partnership with the North East Mayor and Combined Authority, Newcastle City Council and Network Rail, will fund remediation, groundworks and infrastructure activity, fixing complex land issues at the derelict site.
It will also pave the way for a new development platform and the subsequent appointment of a private sector delivery partner, with the procurement process due to start in the coming months.
Quayside West has the capacity to accommodate around 1,100 homes and was brought into public ownership in 2024 following its acquisition by Homes England. It is one of the largest parcels of land at Forth Yards, which is set to become a new, sustainable mixed-use neighbourhood next to Newcastle’s central station and quayside.
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.”
Kim McGuinness, North East Mayor, 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.”
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.”
Robin Dobson, group property director at Network Rail, said: “As Network Rail Property bring forward planning submission for the first phase of Forth Yards with up to 600 homes this year, we welcome this financial commitment to unlock the wider Forth Yards estate delivering a further 2,500 homes. Forth Goods Yard has been landlocked for decades and the combined efforts of Network Rail Property, Homes England and the Newcastle City Council we will enable the transformation of this strategically important site for generations to come.”
