Labour has promised to “turbocharge” the building of new social housing in the North East with the investment of more than £1 billion, writes Local Democracy Reporter, Daniel Holland.
The Government hailed “lifechanging” plans to deliver thousands of new social and affordable homes across the region.
Amid questions over whether Labour can hit a target of 1.5 million new homes by 2029, ministers have allocated the North East an expected £1.1 billion under the Social and Affordable Homes Programme (SAHP) – a £39 billion scheme running until 2036.
However, it is unclear at this stage how quickly that money will be handed out.
A further £17.6 million investment in the regeneration of brownfield land for housing, previously announced by the North East mayor this summer, was also confirmed by the Ministry for Housing, Communities and Local Government (MHCLG).
The Government said that regional mayor Kim McGuinness would have the power to “shape the course of action” by setting out what type of homes will be built and where through the indicative £1.1 billion pot, though bids for funding will still have to be approved by Homes England.
While there is no confirmation of where that money will be spent yet, the mayor’s office indicated that it would encourage bids to build on plots of land in what it deems priority areas across Northumberland, Tyne and Wear, and County Durham.
That could include around the proposed Tyne and Wear Metro line extension to Washington and other potential transport link upgrades, riverside sites like Newcastle’s Forth Yards and the Gateshead Quays, and town centres such as South Shields, Wallsend, Ashington and the Sunniside area of Sunderland.
Housing secretary Steve Reed said: “This investment will be lifechanging for thousands of families in the North East waiting for a safe, secure home of their own.
“We’re putting our regional mayors firmly in the driving seat to build – with new cash to turn wastelands into homes and slash social housing waiting lists.
“We’re backing the area all the way to get spades in the ground, fire up those diggers and build, baby, build.”
Ms McGuinness added: “I am going to make sure we use every penny of the £1.1 billion earmarked to help build thousands more homes to rent and more affordable homes across the North East.
“The next step is making sure Homes England are ready to match this ambition and will move at speed to start building the houses we need.
“While we work up those plans we’re getting on with the job of preparing sites for new housing, ready to far exceed the 705 new homes we have so far cleared the way for on brownfield land in Gateshead, Easington, Ashington and many other parts of the region.”
The Local Democracy Reporting Service previously reported in August how 12 projects were earmarked for investment after mayor was given a further £17.6 million to help kickstart building on derelict and disused land, extending a Brownfield Housing Fund programme that had already put in £49.2 million of public investment towards almost 3,000 new homes.
The 12 locations that will potentially benefit from that funding are:
- Sheepfolds Plot 2, Sunderland – £5,120,437
- Sites in Walker, Newcastle – £4,810,755
- Gateshead Old Town Hall Quarter – £3,420,000
- Former Stobswood Brickworks, Northumberland – £2,987,126
- Garage sites in the north of Newcastle – £2,500,000
- Windmill Grove in Blyth, Northumberland – £1,243,937
- Former Coulson Park School site in Ashington, Northumberland – £1,105,459
- Former Easington School Site in Durham – £630,632
- Lanercost Park in Cramlington, Northumberland – £489,179
- Netherton Lane in Bedlington, Northumberland – £250,000
- Derwentwater Court in Bensham, Gateshead – £170,000
- Marden Residents Association, North Tyneside – £131,750
In total, they could produce 1,190 new homes at a cost of £22.9 million to the combined authority.
The mayor’s office stated on Thursday that it had “overprogrammed” the Brownfield Housing Fund pipeline to ensure all of its money would be spent in case any schemes are delayed, and that it would seek funding from other sources if needed.
A further £6.1 million is being allocated to the Tees Valley, which the Government said would unlock 244 new houses and revive run-down sites.
MHCLG also announced £225,000 each for Newcastle and Hartlepool councils to help “accelerate the construction of council homes at a scale not seen in years”.
Daniel Holland
Reporter for the Local Democracy Reporter Service.
South West Durham News covering news across County Durham.
