unlocking the future of Newcastle’s Founders Place: a new chapter for a historic site

Regeneration is about more than just restoring buildings – it’s about reviving Communities, reconnecting people with their city’s history, and creating spaces that serve a meaningful purpose once again. In Newcastle, the next step in the evolution of the historic Founders Place is poised to bring a long-neglected site back into public use, balancing the preservation of heritage with the demands of modern living.

At the heart of this transformation is the site of the former Stephenson Engineering Manufactory, an area steeped in industrial history but left derelict for almost two decades. Now, through sensitive regeneration, this important location will be brought back to life, creating new homes, business space, and public areas – ensuring that its rich past can shape its future.

Founders Place: a site ready for renewal

Tucked within Newcastle’s historic Stephenson Quarter, the South Street site was once a centre of innovation, home to the workshops where George and Robert Stephenson helped shape the railway revolution of the 19th century. Over time, the site evolved with the demands of industry, but after the last tenant, Doves Building Merchant, vacated in 2004, it fell into disrepair. Today, the remains of the Machine Shop and Smith’s Shop stand as fragile reminders of the area’s heritage – structures that are now both inaccessible and unsafe.

The first step towards transforming Founders Place is crucial enabling works that will clear hazardous materials, remove unsafe structures, and secure the site for future development. With £1.65 million allocated from Newcastle City Council’s successful bid for government brownfield regeneration funding, this initial phase will set the groundwork for unlocking millions of pounds of inward investment, ultimately delivering the Orchard Yard housing scheme.

These works are not about erasing history but about safeguarding it. Thoughtful restoration will ensure that elements of the earliest industrial structures are retained, while new public spaces and housing will breathe life back into the area. Once completed, the project will see around 70 homes introduced alongside new business spaces, a public park, and a courtyard, transforming what was once an abandoned site into a vibrant part of the city once again.

regeneration with a purpose

At igloo, regeneration is never just about development – it’s about respecting the past while creating places for people to thrive. Since 2020, igloo has worked in partnership with Newcastle City Council and other key stakeholders to bring forward plans for the former Stephenson Works sites. The successful restoration of The Pattern Shop, completed last year, demonstrated what is possible when heritage-led regeneration is approached with care and commitment. Now, the next chapter focuses on the Machine Shop and Smith’s Shop – two structures that present significant challenges but also enormous potential.

Insiyah Khushnood from igloo explains:

“The enabling works are the first essential step to breathe new life into the derelict site of the former Stephenson Works, which will ultimately become the Orchard Yard residential scheme. Without these works, the site would remain abandoned and inaccessible.”

Beyond making the area safe, these efforts will also allow for deeper archaeological investigations, uncovering layers of industrial history that may otherwise have been lost.  

Heritage Consultant Sarah Dyer highlights the significance of the site’s evolution:

“George and Robert Stephenson were at the forefront of technological innovation in the 19th century - comparable to the pioneers of mobile phone or electric vehicle design today. The Machine Shop and Smith’s Shop reflect the changing demands of locomotive and marine engine production, expanding and adapting over time to meet the needs of new technology and innovation.”

With careful restoration, these spaces will have the opportunity to serve new purposes - whether as homes, creative spaces, or places of innovation -ensuring that the spirit of invention that defined the site in its early days continues to shape its future.

reconnecting the city with its heritage

Once complete, this project will not only restore the physical fabric of Founders Place but will also re-establish public connections to the area. The reopening of South Street will provide improved access to the Quayside, linking the district back to the wider Stephenson Quarter and creating a new space for people to gather, live, and work.

The impact of this regeneration extends beyond bricks and mortar. The project is expected to contribute to Newcastle’s economic growth by creating jobs and attracting investment. There are also plans to explore temporary 'meanwhile' uses for the site during the phased development process, such as pop-up urban markets and art trails, ensuring that the space remains active and accessible even as work progresses.

Additionally, igloo is committed to engaging with the Community throughout the development process, continuing its collaboration with local institutions such as the UTC school, Newcastle College, and nearby universities. Educational and training projects will be developed, helping to inspire the next generation of engineers, architects, and urban designers.

Sarah Dyer reflects on the wider impact of this work:

“The future prospect of reopening South Street, reconnecting to the Quayside, and seeing the area once again alive with people, activity, and creativity is truly exciting. I feel the Stephensons would have approved!”

a future rooted in the past

Newcastle’s Founders Place is a site with a remarkable history, but its story is far from over. Through considered, heritage-led regeneration, this project will secure the area’s future – transforming a once-forgotten space into a place that once again belongs to the people of the city.

By prioritising restoration over demolition, innovation over erasure, and accessibility over abandonment, this regeneration effort embodies the ethos of igloo: creating places that are not just built for today but are designed to last.

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