The North East Mayor and Gateshead Council announced a £3.4 million funding boost on 26 February 2026 to turn the empty Old Town Hall in Gateshead, Tyne and Wear, into a new neighbourhood. This investment will help transform the historic Victorian building into a place for people to live, bringing life back to a landmark that has stood mostly empty since 1987.
A developer called Capital&Centric will lead the work, which is expected to create more than 200 new homes. The project also includes plans for new cafes, bars, and restaurants, as well as public green spaces for the local community to use.
The funding is part of a larger £22 million package from the North East Combined Authority intended to build over 1,100 homes on land that was previously used for other purposes across the region. Leaders hope the project will protect local heritage while providing more housing and new jobs in the town centre.
Over the next few months in 2026, the developer will seek opinions from the local community regarding the detailed plans for the site. Residents should be prepared for construction activity and some changes to local services as the project moves forward.
About this article: This story was put together with the help of AI tools and checked by a real person on our team. We're a small crew trying to cover as much of the UK as we can on a limited budget. We're getting better every day - but we're not perfect yet. If something looks off, let us know. You're part of the process.