Southernwood revival builds hope in Gateshead

A derelict building in Gateshead is being transformed into supported housing for vulnerable young adults.

Tyne Housing has appointed Walter Thompson (Contractors) Ltd to begin construction on its Southernwood scheme, which will convert a former care home into 14 self-contained one-bedroom apartments. 

Officials say the development, supported by Gateshead Council and Homes England, will include up to six dedicated ‘move on’ flats designed to help residents take steps toward independence and employment.

Steve McKinlay, chief executive of Tyne Housing, said: “Southernwood is an active residential development with initial works now complete and the next phase of construction soon to get well underway. 

“The original layout was perfect for conversion into quality apartments, and with our contractors getting ready to begin the internal build, we’re excited to see it transform and become a positive part of the local community.  

“Developments like this are not only crucial to address a local homelessness crisis but are important to encourage and support local jobs within the supply chain too, generating positive social impact within the community and helping those that need it most. 

“Here, as well as at our other scheme currently being built in Pelaw, we can make a real difference at every stage, culminating in high quality supported housing that is very much needed.”

The two-storey scheme will retain the building’s existing exterior while creating new internal layouts, communal areas and outdoor spaces to promote wellbeing. 

It will be managed around the clock by a dedicated support team to ensure residents have access to the help they need.

Paul Hammerton, managing director at Walter Thompson (Contractors) Ltd, added: “We’re proud to be working in partnership with Tyne Housing and Gateshead Council to bring the disused Southernwood care home back to life.

 “This project allows us to retain and revitalise the original building structure while creating high-quality supported housing for vulnerable young adults. 

“It reflects our commitment to sustainable construction and responsible regeneration, and we look forward to delivering a safe, modern environment that supports residents to thrive.”

Backed by over £2 million in capital and revenue funding through the Government’s Single Homeless Accommodation Programme (SHAP), the project aligns with wider national housing strategies promoting the role of supported housing in tackling homelessness.

Southernwood is expected to welcome its first residents by spring 2026. 

Councillor Chris Buckley, cabinet member for housing at Gateshead Council, added: “We’re proud to be working in partnership with Tyne Housing to bring the former Southernwood care home back into meaningful use. 

“This is a perfect example of how targeted investment can breathe new life into redundant buildings, transforming them into state-of-the-art facilities that make a real and lasting difference.

“Once completed, Southernwood will offer a vital lifeline to some of the most vulnerable members of our community – providing not just a roof over their heads, but the support and stability they need to build independent futures. 

“We look forward to construction getting underway and seeing this much-needed scheme take shape.”

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