News Beat
Big developments in the North East in 2026
There are big hopes for progress on major redevelopment schemes across the region and movement on stalled building sites that have endured years of setbacks and delays.
Here, we take a look at some of the major changes you can expect to see across Tyne and Wear, Northumberland, and County Durham this year and pick out some critical decisions that local leaders will have to make.
The Gateshead Flyover
After more than 12 months standing empty and abandoned, the crumbling Gateshead Highway flyover is due for demolition over the coming months. Council bosses have said that they hope to have the structure largely removed by May, though there remain some key questions – not least whether the project will require another shutdown of the Tyne and Wear Metro, as was the case in the aftermath of the emergency flyover closure in December 2024.
And while local leaders believe that the demolition of the flyover can pave the way for major regeneration of the town centre, no firm redevelopment plans or funding for such a vision are yet in place.
Sheepfolds, Sunderland
Sunderland’s riverside has already undergone a major transformation over recent years – with the redevelopment of the old Vaux brewery site, the popular Sheepfolds Stables, and the recent opening of the Keel Crossing footbridge connecting the city centre with the Stadium of Light. And 2026 should see a vital decision made on the next phase of the Sheepfolds project, which has already proved highly controversial.
Up to 600 new homes are planned in the overhaul of the Wearside industrial estate, but the city council and Vistry Homes’ vision has attracted hundreds of objections – including from Sunderland AFC. There have been concerns that the proposals could jeopardise a potential expansion of the stadium’s south stand in the future.
Council chiefs recently extended their deadline for a decision on the contentious planning application to April 3, 2026.
Alongside schemes like the proposed redevelopment of High Street West, the opening of a new eye hospital, and the Culture House project, there is a lot going on in Sunderland at the moment.
Pilgrim Quarter, Newcastle city centre
Newcastle’s biggest ever office building is nearing completion. The vast Pilgrim Quarter complex stretching across Pilgrim Street, Market Street, New Bridge Street West and John Dobson Street will soon be home to around 9,000 staff as it becomes HM Revenue and Customs’ (HMRC) new base in the North East.
The development hit a landmark before Christmas as the construction of the 463,000 sq ft office was completed, ready for it to be handed over for HMRC to fit out the interior this year and get it ready for civil servants to move in in 2027.
QTS data centre, Cambois
Work is due to start this year on the first buildings in a £10 billion datacentre at Cambois, in Northumberland. Councillors approved plans before Christmas that will allow for the first phase of construction on the major redevelopment of the former Blyth Power Station site.
American firm QTS has permission for the first two of an eventual ten data halls, vast facilities standing 110ft tall and each requiring eight separate electricity lines and 55 diesel-powered generators to act as an emergency power supply.
Once fully operational, the site will be staffed by around 400 people and it is hoped that it could indirectly create up to 2,700 jobs in related tech industries.
South Tyneside College move, South Shields
Building work is already underway on a £95 million relocation of South Tyneside College and the South Shields Marine School into the heart of the town centre. Set to open in September 2027, it is hoped that moving the college’s staff and students from Westoe into the new campus will help breathe fresh life into South Shields.
The Maltings, Berwick
England’s most northerly theatre is in line for a major redevelopment, after a long debate over its £28 million overhaul. Northumberland County Council approved plans for the regeneration last summer, with work scheduled to start in Spring 2026 and complete in early 2028.
The designs, which have divided opinion in Berwick, include a new theatre space, two cinema screens, and an expanded café and bar. While the Maltings is redeveloped, the venue will temporarily relocate to the Berwick Barracks site, using the Mob Store and Gymnasium buildings.
Gateshead Quays
There has been a huge question mark hanging over the future of this prime piece of land on the south bank of the Tyne for years. Earmarked for a “world class” conference centre and 12,500-capacity arena, the regeneration of this former car park site on the Gateshead Quays has been hailed as a spectacular opportunity for the North East.
But there has been no sign of construction starting on the development and there is known to be a significant funding gap, with the Levelling Up Fund-backed scheme’s prospects having been hit badly by inflation since originally being approved in 2020. The North East mayor’s office stepped in last year to carry out a fresh assessment, alongside Gateshead Council, of market demand for the project and what can realistically be achieved now.
Many will be hoping for a swift resolution to that in 2026 and some welcome clarity on what happens next.
Freight Island, Newcastle
A multi-million pound destination inspired by New York’s Coney Island and Copenhagen’s Tivoli Gardens, Freight Island is the venture taking over the upper floors and rooftop of the former Debenhams department store in Eldon Square. The development is poised to become the largest food, drink and live music venue in a UK city centre.
Originally slated to open in autumn 2025, the scheme is now expected to launch in the first half of this year.
Crown Works Studios, Sunderland
One of the big stories of 2025 was the news that the flagship Crown Works film studio project in Sunderland had lost its main investor. Since then, a search has been on for new funding to get the landmark Pallion development back on track.
City council leader Michael Mordey said recently that he expects construction to start on a first phase of building this year, with news on the site’s future expected soon. However, it is unclear whether the Crown Works can be delivered as originally envisioned or if it will be heavily scaled back. As it stands, planning approval has only been granted for an initial phase of construction that would include four sound stages – rather than the 19 first proposed.
Shields Ferry, North Shields
After warnings that the future of the Shields Ferry would be in doubt unless a replacement landing is built in North Shields, work is finally about to start on a £24 million scheme next to the Fish Quay. Belfast-based construction and civil engineering firm McLaughlin & Harvey was recently awarded a contract for the project, after a series of setbacks and delays over recent years, and the new north landing is due to open in 2027.
It is hoped that moving the ferry stop to the FIsh Quay will further boost its regeneration and attract more visitors to the town, which has just celebrated its 800th anniversary.
Forth Yards, Newcastle
Quayside West has been hailed as the biggest regeneration opportunity in Newcastle over the next 20 years. Around 1,100 homes are earmarked for a vast plot of derelict riverside land in front of the Utilita Arena, where the old Elswick leadworks once stood.
Don’t expect to see any major progress here in the immediate future, with the development scheduled to potentially continue up to 2047. But this year should see a major decision made as Homes England is due to award a £330 million contract to a building partner who will take the scheme forward.
After years of setbacks and delays to arguably the city’s most troubled development site, 2026 could provide a significant step forward.
But that is just one piece in the wider Forth Yards area jigsaw, with up to 2,500 new homes ultimately planned and a possible new footbridge over the Tyne even suggested. Network Rail recently unveiled its plans to regenerate the derelict Forth Goods Yard behind Central Station with new homes and a car park, while construction continues on the major Olympian Homes development in Pottery Lane.
A decision is also expected shortly on whether the owner of the City Heliport can push ahead with their own ambitions for an £86.6 million housing scheme, following a protracted row with the city council that culminated in a planning inquiry last year.
Milburngate, Durham
The Milburngate development in the centre of Durham was meant to open in 2022, bringing new offices, homes, a cinema, bars and restaurants to the riverside.
But the project, having suffered when contractor Tolent went bust and has been the subject of fire safety concerns, remains unfinished and has been shrouded in controversy.
Durham County Council had planned to acquire the site itself and resolve the uncertainty over its future, but that was thrown into doubt after the power shift at County Hall that saw Reform UK take over the authority last May.
The council said recently that it was still in talks over whether it would have any further involvement with the Milburngate project, with development Arlington Real Estate confirming that “discussions are ongoing to unlock a resolution”.
