North East Mayor Kim McGuinness today announced £22m investment that will help people seeking a home by driving the development of 1,122 new homes across towns and cities in the region.
The money will be spent to prepare brownfield sites many of which are derelict or have stood empty to create new homes in Ashington, Blyth and Stobswood in Northumberland, Easington Colliery in County Durham, and Riverside Sunderland’s Mayoral Development Zone.
In Gateshead funding will convert the historic Old Town Hall and the area around it into sustainable town centre homes, while in Newcastle the new funding will allow the city council to replace dated garages with new homes for social rent at the heart of existing neighbourhoods.
More than a third of the new homes across the North East – 398 of the 1122 - will be for social rent or affordable purchase.
North East Mayor Kim McGuinness said: “I promised to get more homes built for local families and now we are delivering on that with £22m funding for councils, housing associations and developers to get 1,122 new homes built.
“We are providing money to turn derelict and run-down sites in the heart of neighbourhoods in place like Newbiggin Hall and Kenton, Walker, Blyth, Ashington, Easington Colliery and Gateshead into great places to live and bring up your family.”
The grant funding unlocks almost £200m of investment by local councils, housing associations and developers creating and supporting hundreds of jobs in the construction industry over the next seven years.
Gateshead Council will see £3.4m funding to create 243 new homes, along with new commercial space in and around the landmark Old Town Hall with the social impact developer Capital&Centric giving a new lease of life to the area. The energy-efficient development will create 270 jobs in the construction phase.
Newcastle City Council will use old garage sites across 17 sites in Newbiggin Hall, Kenton, Slatyford and West Denton to build 109 new homes for social rent, while 451 new homes including 137 for affordable rent or buy will be built as part of the 7-site Walker masterplan in the east of the city. Riverside Sunderland has recently been established as a Mayoral Development Zone. The funding will acquire and unlock land for a mixture of 89 energy-efficient urban homes and commercial space, on Phase 2 of the Sheepfolds neighbourhood which will be the largest residential development within Riverside Sunderland delivering c450 new homes ranging from duplexes to modern townhouses and apartments. In Northumberland sites funded for redevelopment include the old Coulson School land in Ashington which has been derelict since 2017, where Bernicia Group will build 57 homes for social rent. Additionally, at Lanercost Park in Cramlington, 16 new homes for affordable rent, featuring renewable energy technologies, will replace flats that were unfit for purpose.
The funding for the former Stobswood Brickworks site, which has lain empty for 25 years, will allow Cussins homes to recondition the site for 101 homes, 10 of them affordable, while Northumberland County Council aims to build 31 homes for social rent at Windmill Grove in Blyth.
Durham County Council will transform the former Easington School site into 25 new high-quality, energy-efficient social rent homes.
Cllr Andrew Husband, leader of Durham County Council and Combined Authority Cabinet Member for North East We Are Proud to Call Home, said:
“As part of our Housing Strategy we are working hard on our ambition to provide good quality housing that not only meets the needs of the people of County Durham, but is affordable. We are doing this by delivering a number of new council homes over the next few years.
“The redevelopment of the Easington School is among the first in the region to receive funding and supports our own programme. It will deliver much-needed housing for people, with features that will keep living costs down.”
Cllr Martin Gannon, the leader of Gateshead Council, said:
‘The Old Town Hall is a vital landmark, not only for Gateshead but for the whole of the North East. As Tyne and Wear's only surviving Victorian town hall, it holds a unique place in our collective story. By securing its future with a new purpose that honours its past, we are ensuring this much loved building continues to inspire, connect and serve our communities for generations to come.’
Cllr Karen Kilgour, the leader of Newcastle City Council, said:
“Transforming disused garage sites and delivering hundreds of new homes across the city is a clear example of how we’re putting our housing ambitions into action. Safe, secure and genuinely affordable homes are the foundation of strong communities, and this investment will help create neighbourhoods that work better for residents now and in the future.
“Thanks to funding from the North East Combined Authority, progress can accelerate, with construction on some schemes expected to begin later this year. This isn’t just about building new properties – it’s about shaping places where people can put down roots, connect with their neighbours and feel part of something bigger.
“It's been a collaborative effort to get to this point, including ongoing support from both Mary Glindon MP and Mayor Kim McGuinnes as we all share the ambition to regenerate Walker and develop housing that meets local need in the area. By investing in modern, highquality council housing, we’re taking meaningful steps to tackle the housing crisis and ensure every resident has a place they’re proud to call home.”
Cllr Michael Mordey, the leader of Sunderland City Council, said:
“Riverside Sunderland is one of the UK’s most ambitious urban regeneration projects which, upon completion, will see over 1,000 new homes rise from the ground in the heart of our city centre.
“A huge programme of work over the past few years has created a stunning location to live and play, with bars, restaurants and leisure venues on the doorstep. This really will be a spectacular new neighbourhood where people will enjoy an enviable lifestyle, and it represents an important step-change in our city centre as we welcome an increased resident population.
“We are absolutely thrilled by today’s news that the Mayor shares our vision for the city and has awarded over £5million to ensure work can continue apace to get the site shovel-ready for development. It will be truly transformational for the city.”
Cllr Glen Sanderson, the leader of Northumberland County Council, said:
“Providing more quality, affordable homes in areas of identified need, continues to be one of our top priorities and we’re making fantastic progress.
“More than 1,700 affordable homes to rent or buy have been built in recent years with planning permission granted for a further 1369 affordable homes.
“We are delighted to have secured this external investment for the county which will help to convert old and derelict areas into modern and energy efficient housing for our local communities.”
“Each affordable home can be life changing, enabling local residents to live in a home, in their local community and at a price they can afford.”