Treasury sparks confusion with doubled ‘5,000 homes’ plan for Newcastle regeneration site
A Treasury announcement on Thursday made the assertion about the Forth Yards area to the west of the city centre, a vast ex-industrial plot viewed as vital to Tyneside’s economic growth and which has been earmarked for a maximum of 2,500 properties.
North East mayor Kim McGuinness said it was “great to see the Chancellor back my plans for 5,000 new homes on the Forth Yards site”.
However, when asked by the Local Democracy Reporting Service (LDRS), neither the Treasury nor the North East Combined Authority (NECA) could explain how the doubled figure had been reached.
Thursday’s Government announcement hailed the creation of a new property company by Network Rail and London & Continental Railways to develop sites including the Forth Yards and “deliver 40,000 new homes over the next ten years”.
The Treasury also described the Forth Yards area as a “100-acre regeneration opportunity”, when Newcastle City Council’s development framework for the area in fact lists it as being roughly half that size.
A NECA source subsequently indicated that the 5,000 homes number had come from the Treasury rather than regional officials – and that the combined authority, Newcastle City Council, and Homes England were still working towards the 2,500 target.
Network Rail later told the LDRS that the 5,000 homes represented a “potential figure across the site” and that the 100 acres included additional land owned by Network Rail in the Newcastle area.
The Treasury had not responded to a request for comment at time of publication.
Labour wants to see 1.5 million homes built across this Parliament and is relaxing planning rules in an effort to speed up development.
Network Rail owns the Forth Goods Yard site next to Central Station, which has been earmarked for a multi-storey car park and up to 600 homes.
The wider Forth Yards area also includes the Quayside West plot next to the Utilita Arena, which was purchased by Homes England last year and has capacity for around 1,100 homes.
Councillors were recently told that the Government was being asked to stump up £120 million to remediate land and build new infrastructure to unlock the Quayside West site after years of stalled construction plans.
The Newcastle Heliport and land off Pottery Lane, where a housing scheme backed by US investment giant Hines is currently being built in between the Redheugh and King Edward VII, also form part of the huge Forth Yards area.
In response to the Treasury’s announcement on Thursday, Ms McGuinness said:”We’re building more homes right across the North East and it’s great to see the Chancellor back my plans for 5,000 new homes on the Forth Yards site. We’re showing that if we’re given the right tools, the North East can get on with the job, in County Durham, in Sunderland, in South Shields and now in Newcastle.
“The site we’re talking about here is land that has been left mostly unused for 20 years, a wasted opportunity for our region on the banks of the Tyne and close to the city centre. It is exactly the kind of site we should be putting houses on. Now, we’ll create jobs building up the site for homes where families can lay down roots for the future.”
Chancellor Rachel Reeves said: “For too long, surplus government-owned sites have gone underused, but they are a huge untapped resource that could create opportunities for the next generation of homeowners.
“In contrast to the failed approach of the past, we are making the best use of public land to build the homes that families and our Armed Forces need, improving opportunities for homeownership and creating jobs across the country.
“The OBR has confirmed our planning reforms will result in housebuilding being at its highest in over 40 years – that won’t just bring jobs and economic growth – but also will give families the homes that they deserve, delivering on our Plan for Change.”
Newcastle City Council leader Karen Kilgour called the Forth Yards “one of Newcastle’s most exciting development sites with amazing views over the Tyne”.
She added: “This new approach to bring much needed developments to this brownfield site is a vote of confidence from the Government in our ambitions to create something really special with our partners.
“Not only will it boost the city’s economy but also support the Government’s ambition to build 1.5m new homes which Newcastle and the country is crying out for.”
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