£12m pound boost for stalled North East housing projects – including at demolished Gateshead estates

More than £11 million of public money has been committed in a bid to kickstart a series of troubled housebuilding projects across the North East.
The major funding approved includes a £5.2 million allocation to help with the redevelopment of two demolished housing estates in Gateshead, Clasper Village and the Chandless estate, where building plans have stalled. Money will also be pumped into the regeneration of a former South Tyneside shipyard, disused land in the West End of Newcastle, and projects in Wallsend and Longbenton – with the various schemes totalling 640 new homes combined.
Political leaders signed off on the investment at what was the final meeting of the North of Tyne Combined Authority’s (NTCA) cabinet on Tuesday afternoon, ahead of its dissolution and the election of a new North East mayor in May. The funding comprises £4.4 million from the North of Tyne’s existing Brownfield Housing Fund, plus a further £7.2 million of early cash released under the region’s new devolution deal which will also cover the south of Tyne areas of Gateshead, Durham, Sunderland, and South Tyneside.
Dame Norma Redfearn, mayor of North Tyneside, said: “Across the North East demand for housing has never been higher and without this investment these sites would stand derelict. Instead, we are able to turn them into beautiful communities of homes where families can settle down, children can grow up and lifelong memories can be made – all while preserving our green spaces. This is a huge step forward in creating that vision. It’s about building not just houses, but good quality much-needed homes and creating jobs that people desperately need.”
The Clasper Village housing estate was demolished between 2015 and 2018 and has remained vacant ever since. That site, which an NTCA report says “acquired a poor reputation due to residential decay and antisocial behaviour”, will receive a £3.1 million grant towards Gateshead Council’s proposals to develop it for 250 new houses.
The Chandless estate, near Gateshead town centre, has also lain empty for several years, with “high abnormal costs” having inhibited its redevelopment. It will receive £2.2 million in order to help with the remediation of the land and make its transformation with 120 homes financially viable for builders.
Gateshead councillor John Adams said: “We are, of course, very pleased to see more than £5m on its way to Gateshead through the North East devolution deal. The funds are pivotal to the regeneration of the identified sites, and will provide much needed new housing options to the residents of Gateshead, while also attracting new people and businesses to the area, boosting the local economy.”
Just under £2 million has been allocated to the Kelly’s Yard scheme on the Hebburn waterfront, the site of the old Hawthorn Leslie Shipyard, where there are plans for flats, a new convenience store and nursery. The NTCA said that, without the extra funding from the public sector, its regeneration “would be unviable due to significant demolition of derelict and dangerous structures and large-scale remediation works required”.
A further £1.8 million will be spent to bridge a funding gap for the Benwell Dene development in Newcastle, a 146-home estate earmarked for a disused patch of land between Delaval Road and the Allan Court care home. A combined £1.5 million has also been awarded to the redevelopment of three brownfield sites in North Tyneside that have been empty for up to a decade – the former Rosehill Social Club and the Parkside House office block, both in Wallsend, and the derelict St Peter and St Paul church in Longbenton.
North of Tyne mayor Jamie Driscoll said: “This investment helps to continue that work and kick-start new projects across the North East. It unlocks good jobs and apprenticeships for local people, will bring money into the region from private companies and create over 600 new homes.”
It is hoped that construction work can start at Kelly’s Yard, Benwell Dene, and the three North Tyneside projects this year, with Clasper Village and Chandless to follow in 2025.
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