Plans to regenerate Gateshead’s Baltic Quarter have taken a significant step forward after the council agreed a pre-development deal with Muse and ECF to progress a major mixed-use scheme of around 1,600 new homes.

Under the agreement, ECF will work alongside Gateshead Council to develop the long-term vision for the site, shaping funding, phasing and delivery. The Baltic Quarter plays a central role in the council’s regeneration strategy unveiled last autumn.

Initial work will focus on how new homes and workspaces can be introduced alongside improved public spaces, landscaping, routes and infrastructure. The proposals aim to support the area’s existing business community, including Gateshead College and the Northern Design Centre, while creating space for future growth.

The council said the regeneration will build on the quarter’s established creative and commercial character, helping current businesses remain and expand, while attracting new companies and talent to Gateshead and neighbouring Newcastle.

An early masterplan for the Baltic Quarter has been prepared by architect Brown + Company. Sustainability sits at the heart of the proposals, with the area already benefiting from a district energy network powered by the UK’s largest urban solar farm and mine water heat. A recently completed 1,000-space car park has also been designed to support large-scale electric vehicle charging.

Sir Michael Lyons, chair of ECF, said the pre-development agreement allows partners to work closely with the council and local stakeholders to shape proposals that reflect Gateshead’s industrial heritage while delivering lasting economic and social benefits.

The agreement was secured through Pagabo’s developer-led framework. Council leader Martin Gannon said the scheme could deliver more than 1,600 homes, new office space and high-quality public realm, creating a visible statement of confidence in Gateshead that could help attract further investment to the borough.