£120 million regeneration boost to transform Newcastle’s last major brownfield site into new neighbourhood with up to 2,500 homes
Source: gov.uk (2025-08-18)

Government has approved funding package to accelerate the creation of new homes, public realm and commercial space at Forth Yards

A new funding package worth £121.8 million has brought the transformation of Quayside West at Forth Yards in the heart of Newcastle another step closer for people of the city.

The package will fund vital remediation, groundworks and infrastructure activity, fixing complex land issues that have long acted as a barrier to investment at the site, which despite its prime location near Newcastle Central Station and the city centre, has lain derelict for decades.

Government has approved the business case for the package, developed by Homes England, working 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.

Kim McGuinness, North East Mayor, said:

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 new funding package will pave the way for a new development platform and subsequent appointment of a private sector delivery partner, with the procurement process due to start in the coming months, while public sector partners will continue to accelerate progress across the whole Forth Yards site.

Quayside West, a parcel of land with capacity for around 1,100 homes alone, was brought into public ownership in 2024 after being acquired by Homes England, the government’s housing and regeneration agency.

It’s one of the largest parcels of land at the centre of Forth Yards, which is set to become a new, sustainable mixed-use neighbourhood next to the city’s central station and Quayside, giving the city a new, well connected western gateway.

The site is a strategic priority for Newcastle City Council and the North East Combined Authority, which last year strengthened ties further with Homes England through a Strategic Place Partnership.

Leader of Newcastle City Council, Cllr Karen Kilgour, 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, said:

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.

The news today follows the recent government announcement on Forth Goods Yard, another parcel of land at Forth Yards, being one of the first regeneration opportunities to be brought forward as part of the creation of Platform4, a new property company focused on transforming rail-led land through the creation of new homes and neighbourhoods.

Robin Dobson, Group Property Director, 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.

Developers interested in helping Homes England and partners achieve their ambitious vision for Forth Yards can get in touch at xxx@xxx.xx (mailto:xxx@xxx.xx).

Notes to editors
- Homes England is the government’s housing and regeneration Agency, and we’re here to drive the creation of more affordable, quality homes and thriving places so that everyone has a place to live and grow. We make this happen by working in partnership with thousands of organisations of all sizes, using our powers, expertise, land, capital and influence to bring investment to communities and get more quality homes built. Learn more about us: www.gov.uk/government/organisations/homes-england/about (https://www.gov.uk/government/organisations/homes-england/about)
- Strategic Place Partnerships (SPPs) are a commitment from Homes England and a Mayoral Strategic Authority to deliver against local housing and regeneration ambitions. Homes England has SPPs in place with NECA in addition to Greater Manchester, Liverpool City Region, South Yorkshire, West Yorkshire, the West Midlands, the West of England, and Cambridgeshire and Peterborough, with more planned to best serve the housing and regeneration needs of millions of people across the country. Read more about our SPP with NECA. (https://www.gov.uk/government/news/housing-boost-for-north-east-communities-as-combined-authority-deepens-strategic-ties-with-homes-england)
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