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The new houses are to be located at The Rise in Scotswood.
The investment, from The North of Tyne Combined Authority (The NTCA), forms part of its £32m Brownfield Housing Programme, which is regenerating brownfield sites and unused pockets of land across Newcastle, Northumberland and North Tyneside.
It is the second grant allocated from The NTCA to New Tyne West Development Company’s (NTWDC) popular regeneration scheme, which previously received £2.9million to support an uplift in construction on the second phase of its development programme.
A partnership between Newcastle City Council and Keepmoat Homes, NTWDC was established in 2011 to regenerate a 79 acre site in the west end of the city. Since building began at The Rise in 2013, the partnership has delivered almost 500 homes – 439 for private sale and the remainder for affordable rent and shared ownership.
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Lee McGray, Director of NTWDC said: "The Rise is a flagship project in the North East, so it a real boost to the development to secure funding which will help support works on some of the infrastructure required to create these news homes - including retaining walls and works to highways.
"Together with the jobs, training opportunities and community support initiatives we've provided in the area, The Rise is breathing new life into this vibrant part of the city."
NTWDC has improved access to employment, created 18 apprenticeship roles, safeguarded over 1000 jobs and backed a number of school and non-development apprenticeships projects.
Alongside this, local community and charity groups have benefitted from up to £75,000 each year from a fund set up by the partnership, to support a range of educational, art and environmental initiatives, celebrating the area’s history.
When completed, The Rise will comprise around 1,800 homes with its own district heating system – already in place – and a neighbourhood centre, including community, retail and health provision space.
