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£67m major funding boost for two new neighbourhoods in Sheffield

Two brand new residential neighbourhoods in Sheffield city centre providing 1,300 new homes, have been handed a major, multi-million-pound boost.

As well as new homes, the £67m funding for the new developments at Furnace Hill and Neepsend will unlock commercial space and lead to a major redevelopment of the areas.

Secretary of State for Levelling Up, Housing and Communities, Michael Gove, announced the funding at the Convention of the North event in Leeds on Friday 1 March.

Development of the proposals, which has been led by the Sheffield Together – Housing Growth Board, will now be able to support important land assembly and enabling works across the sites. The Sheffield Together Housing Growth Board is chaired by Sheffield City Council’s Chief Executive Kate Josephs and includes representatives from the Council, Homes England, South Yorkshire Mayoral Combined Authority, the Sheffield Property Association, and the South Yorkshire Housing Partnership.

Under the plans, Furnace Hill and Neepsend will be transformed into two distinctive neighbourhoods, capitalising on their historic and natural assets. The developments will also include a network of new public spaces and streets to improve connections between the city centre and Kelham Island.

Cllr Tom Hunt, Leader of Sheffield City Council, said: “This major investment will help to create two new city centre neighbourhoods on brownfield land.  It will help to breathe new life into Furnace Hill and Neepsend and create great neighbourhoods with 1300 new homes”

Furnace Hill will incorporate a mix of residential homes alongside new local facilities, commercial and leisure premises. A new public realm will also be created, centred around the at its core and celebrating the industrial heritage of the area.

The new neighbourhood at Neepsend, on the banks of the River Don, will provide a range of housing, local facilities, and green spaces.

Cllr Hunt continued: “Importantly, we have also put down a marker for support from the next round of the Government’s Affordable Homes Programme, to ensure a minimum of 20% of these new homes is truly affordable accommodation which is within the reach of everyone.

“Through our Sheffield Together partnership we are working hard to drive up housebuilding and regenerate parts of our city. This investment for Furnace Hill and Neepsend is an early outcome and we’re delighted to see our collaboration starting to come to life. Sheffield is a city on the up and we have big plans for further new neighbourhoods.”

Peter Denton, Chief Executive of Homes England, said: “This funding will kickstart the transformation of Furnace Hill and Neepsend, paving the way for 1,300 new homes and 4,000 square metres of commercial space, and, ultimately, the creation of two new vibrant communities for the people of Sheffield to enjoy.  

A core part of our remit is to utilise all the tools at our disposal to help places to achieve their vision for their area. Our work with Sheffield City Council over the last two years is a prime example of what this looks like in practice. We’ve worked in partnership with the council and other local stakeholders to create a viable action plan, and now we’re providing the funding to help make it happen.”

Martin McKervey, Chair of Sheffield Property Association said: "This is truly great news for Sheffield and South Yorkshire. The Government’s Levelling Up White Paper makes a clear and compelling case for partners to work in places in a joined-up and collaborative way. This is exactly what we have been doing through the Sheffield Together partnership over the last three years and more. This investment into our city will deliver high quality, transformative housing and regeneration and it will have a catalytic effect on wellbeing and prosperity.

"The Sheffield Property Association greatly values this partnership working with Homes England, Sheffield City Council, South Yorkshire Mayoral Combined Authority and, representatives of various housing associations. This is a great team effort’’

The redevelopment at Furnace Hill and Neepsend further adds to the growing number of projects reshaping Sheffield city centre, including the £470m Heart of the City II centred around Cambridge Street. Sheffield City Council is also spearheading the transformation of the former home of Castle Market into a park and events space, opening up the River Sheaf for the first time in decades and also revealing the remains of Sheffield Castle, the birthplace of the city. The Council is also putting plans in place to turn Parkwood Springs and the old Sheffield Ski Village into a country park in the city and has other significant regeneration plans at different stages including at Moorfoot and the area at Sheffield train station.