Mary Kelly Foy MP reacts to sale of Milburngate development

On Wednesday (March 4) evening, property firm Northhold Group announced it has purchased the site, which includes 153 apartments, offices and a leisure complex on the banks of the River Wear.

The buyer pledged to finally bring the “landmark development” to completion and said it will collaborate with Durham County Council to “deliver a vibrant and successful destination for the city”.

Milburngate (Image: SARAH CALDECOTT)

Work is expected to start on completing the site in the coming months.

Reacting to the news, City of Durham MP, Mary Kelly Foy said that the announcement was “potentially good news for the future of Milburngate”.

She added: “For too long it has been sitting in limbo, when it should have delivered jobs, homes and office space many years ago.

“Residents of Durham still require some clarity on this new deal, and need to know how soon things will be moving forward; when we can expect this site to begin delivering for the local economy and, most importantly, in the short term, how the new developer will overcome the issues that have dogged the site for so long.

“I have already reached out to the new owners, requesting a meeting to discuss their plans and timescales for the site, and will be following this up with the local authority too.

“If this deal does finally deliver a fully open and vibrant Milburngate, however, then I would offer my congratulations to Durham County officers for getting this over the line.”

A Premier Inn hotel, Everyman Cinema and BrewDog pub have been built at the site, but the project has been repeatedly delayed and shrouded in controversy since 2022, when it was initially due to open.

Mary Kelly Foy, City of Durham MP (Image: PARLIAMENT)

The collapse of contractor Tolent in 2023 brought progress to an abrupt halt. Since then, ongoing fire safety concerns and alleged defects in the steel framework have prompted further investigations, leaving the site without the necessary certifications to open and still cordoned off.

Last February, Durham County Council’s previous administration agreed to enter negotiations to potentially acquire the site. But the new Reform UK administration said in September it was ‘reviewing its position’ on several projects.

The Milburngate development (Image: Stuart Boulton)

Announcing the purchase on Thursday, Northhold Group added: “Beyond entertainment and hospitality, the development addresses Durham’s growing demand for quality urban living and workspace.

“The development includes office space and 153 built-to-rent apartments, positioning the city centre as an attractive location for both working professionals and residents seeking contemporary city living.

“We welcome discussions with contractors and prospective tenants who would like to be part of Milburngate’s future.”

Andrew Husband, leader of Durham County Council, said the recent sale will boost the local authority’s plans to improve the city centre and create an innovation district.

The Reform councillor added: “We welcome the news of the sale of the Milburngate development to a new developer, particularly given that they have already set out their intention to bring the site to completion and ensure it can fulfil its potential in this prime location at the heart of Durham City.

“We look forward to the development being completed as soon as possible and contributing to our exciting plans for the wider Durham Innovation District in the city centre.”