Metrocentre and Gateshead Council have signed a formal agreement to move forward with Metro Riverside, a major urban regeneration scheme that would transform brownfield land surrounding one of the UK’s largest shopping centres into a carbon-neutral residential and mixed-use district on the southern bank of the River Tyne.
The development would deliver more than 4,500 new homes and create up to 5,000 jobs, making it one of the most ambitious regeneration projects ever attempted in the UK outside the M25. Proponents say it could more than double the site’s annual contribution to the regional economy — from around £1bn currently to over £2bn by 2045.
The scheme is being designed around the concept of a “20-minute neighbourhood,” where residents can access work, shops, green space, and public transport within a short journey from their front door. Plans include walkable streets, cycling connections to Newcastle city centre and the River Tyne corridor, and green corridors linking woodland areas to the riverfront.
Martin Healy, chairman of Metrocentre, said the scale of the project demands a collaborative approach. “Developments of this scale and ambition simply cannot be delivered in isolation,” he said. “By working in partnership with Gateshead Council and others, we can bring together long-term investment, local leadership and shared purpose to create a new dense, urban community that delivers homes, jobs and opportunities.”
Healy also highlighted the environmental dimension of the project, noting it would strengthen flood defences, improve sustainable urban drainage across the wider area, and contribute to nature recovery in a part of the North East that has historically been dominated by retail and car-dependent infrastructure.
The agreement marks a significant evolution from earlier planning discussions. Ideas for housing development on the surrounding brownfield land have been under consideration for over a decade — the local authority first explored a scheme called MetroGreen that initially targeted around 850 homes, and a proposal for a new Tyne crossing to link the site to Newcastle was floated as far back as 2015, though no funding was ever secured for it.
Under the new agreement, Metrocentre and Gateshead Council will co-invest in the first phase of Metro Riverside to bring the project to a delivery plan. The development also features in NECA’s Local Growth Plan and the Strategic Place Partnership with Homes England, which aims to accelerate housing delivery across the region.
The Metrocentre itself is expected to sit at the heart of the new district, evolving from a traditional retail destination into a broader community hub serving the needs of a resident population as well as the wider workforce and visitors to the area.