Funds approved for £120m Newcastle sidings regeneration

The government has approved funding for enabling works to being forward construction of new homes, public realm and commercial space at Forth Yards on the site of old rail sidings in Newcastle.

A new funding package worth £121.8m 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.

The funding is expected to pave the way for a new development platform and subsequent appointment of a private sector developer for the Quayside West, with the procurement process due to start in the coming months, while public sector agencies will continue to progress the wider 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. It iss 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 western gateway.

Newcastle City Council leader Karen Kilgour, said: “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.”

Network Rail property director Robin Dobson 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.”

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