Homes England has struck a landmark deal to build 1,100 homes close to after buying a key plot of land from administrators in a multimillion-pound deal.
Developer Newby first announced plans in 2018 to turn Quayside West – the largest land parcel in Forth Yards – into a new gateway into the city, with hundreds of homes, shops, restaurants and business and leisure facilities. But the plans were thrown into doubt last year when the company behind the scheme went into administration.
Shortly afterwards, administrators at FRP confirmed they had accepted an offer of £7m for the land, deemed one of the most significant brownfield regeneration sites in Newcastle. Now it can be revealed that Homes England has snapped up the site, which has a capacity for around 1,100 homes and a key role to play in the area’s transformation.
Read more: North East's best four new buildings revealed in RIBA Awards shortlist
Sign up for the weekly Commercial Property newsletter from BusinessLive HERE
The whole Forth Yards area has the potential for 2,500 homes, but it also serves up a number of challenges, including access constraints and infrastructure requirements. Homes England says the challenges have halted the private sector’s ambitions to bring it forward, triggering its move into public sector ownership which it says will help it to reach its full potential as part of the wider transformation of Forth Yards.
Peter Denton, chief executive of Homes England, said: “It’s hard to overstate the importance of this acquisition. Not only will the site deliver around 1,100 quality, sustainable new homes, but bringing Quayside West into public sector ownership will act as a catalyst for the wider regeneration of Forth Yards, a key regeneration area for the city that has been stalled for more than 20 years.
“It’s a complex, challenging brownfield site that could have a transformational impact in the city, but it needs up-front public sector intervention to unlock its full potential – and this acquisition is one of the first examples of that. and North of Tyne Combined Authority have a clear vision for Forth Yards, and we’re working with them and Network Rail to take a holistic approach and ensure that it delivers for the people of Newcastle. This will include, if necessary, using our statutory powers to make this happen.”
Most Read
Homes England will work with Newcastle City Council, North of Tyne Combined Authority and Network Rail to drive forward the transformational regeneration of Forth Yards.
Leader of Newcastle City Council, Nick Kemp, said: “Quayside West, as part of the Forth Yards site, is an exciting development with huge potential. As a former industrial site, it has been largely hidden away, visible only by train as you come into the city. However, all of that is going to change. Now that Homes England have acquired the site, we can get on with our partners and create a neighbourhood that is truly world class – sustainable environmentally friendly housing, green open space, walkways, cycleways, and good connectivity to the city centre and with existing communities in the west.
“As a residential-led development it will offer a range of housing including affordable homes that will attract new families, safeguard employment and strengthen the city’s economy in the future.”
North of Tyne mayor, Jamie Driscoll, said: “The Forth Yards site is a perfect opportunity to ramp up this work. By bringing this site into public ownership we can work together to create more green and affordable homes. And the region’s new devolution deal will mean more funding to explore brownfield sites south of the Tyne, continuing to unlock the North East’s potential.”
Dame Norma Redfearn, North of Tyne Combined Authority portfolio lead for housing, land and development, added: “This investment is a huge step forward in creating a vibrant new community for the people of Newcastle. Imagine, 1,100 new homes on a site that was once just a wasteland. It’s a clear sign of our commitment to decent housing for all and rejuvenating neglected spaces. It’s about building not just houses, but good quality much-needed homes.”