Mayor unveils £22 million housing drive

A regeneration boss has announced plans to unlock more than 1100 new homes across the North East through a £22 million investment aimed at transforming derelict sites.

North East mayor Kim McGuinness confirmed the funding will prepare brownfield land in Northumberland, County Durham, Gateshead, Newcastle and Sunderland for development. 

In total, 1122 homes will be delivered, with 398 designated for social rent or affordable purchase.

The investment is expected to unlock almost £200 million in additional backing from councils, housing associations and developers, supporting hundreds of construction jobs over the next seven years.

Mayor McGuinness said: “I promised to get more homes built for local families and now we are delivering on that with £22 million funding for councils, housing associations and developers to get 1122 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.” 

Projects include the regeneration of Gateshead’s Old Town Hall area with Capital&Centric, new social rent homes on former garage sites in Newcastle, alongside further phases of housing at Riverside Sunderland’s Mayoral Development Zone.

Councillor Karen Kilgour, leader of Newcastle City Council, added: “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.   

“By investing in modern, high-quality 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.” 

Councillor Michael Mordey, leader of Sunderland City Council, added: “Riverside Sunderland is one of the UK’s most ambitious urban regeneration projects which, upon completion, will see over 1000 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 £5 million to ensure work can continue apace to get the site shovel-ready for development. 

“It will be truly transformational for the city.” 

In Northumberland and County Durham, long-vacant sites including former schools and industrial land will be brought back into use, delivering energy-efficient homes and revitalising established communities across the region.

Councillor Andrew Husband, leader of Durham County Council and North East Combined Authority cabinet member for North East We Are Proud to Call Home, added: “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.” 

Councillor Glen Sanderson, leader of Northumberland County Council, added: “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 1700 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.” 

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