On 18 February, 2026, Gateshead Council announced a £311 million plan to upgrade thousands of existing properties and build new affordable homes across Gateshead, Tyne and Wear, to help tackle the local housing crisis.
The five-year investment will provide £85 million for home improvements like new kitchens, bathrooms, and windows for 18,000 council tenants. A further £20 million will be spent on better insulation and green heating systems to help residents lower their energy bills and support environmental goals.
About £132 million of the budget is set aside to build new council houses and regenerate older neighbourhoods, including major building projects in the Baltic Quarter and Penrith Grove. Councillor Chris Buckley said the funding allows the local authority to create more housing and update estates where they are needed most.
To pay for these projects and other local services, Councillor Martin Gannon and the council have proposed a 2.99 per cent Council Tax increase for the 2026-2027 year. This budget also includes an extra 2 per cent charge to help pay for social care for adults across the borough.
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