The press release issued by Homes England on 19 May 2026.
Transformation of redundant brownfield land into a thriving urban neighbourhood by Caddick Group boosted by £16 million Homes England grant.
Plans to turn derelict land in the heart of Leeds into a thriving new mixed-use neighbourhood with nearly 2,000 homes have taken a major step forward.
Homes England, the government’s housing and regeneration agency, has announced it will provide a £16 million infrastructure grant to Caddick Group to help deliver Leeds South Village.
The long-term funding will allow Caddick Group to progress vital infrastructure works at South Village including roads, utilities and significant green space.
The site has outline planning permission for 1,925 homes, a proportion of which will be affordable, alongside commercial and significant green spaces. It is part of the city’s South Bank, a former industrial heartland now at the centre of significant regeneration efforts and is one of the focus areas of Homes England’s Strategic Place Partnership (SPP) with West Yorkshire Combined Authority.
The site will also be part of bold new plans to establish a Mayoral Development Zone (MDZ), unveiled today (19 May) by West Yorkshire Mayor Tracy Brabin and Leader of Leeds City Council Cllr James Lewis. Subject to approval by West Yorkshire Combined Authority, the MDZ would cover a broad area across Leeds city centre, acting as a powerful delivery vehicle to unlock up to 20,000 new homes, local jobs, major new public spaces, cultural destinations and commercial developments.
Housing Secretary Steve Reed said:
The government is building the homes we need and transforming neglected brownfield into thriving places where people want to live.
Our cash injection in Leeds will not only see local families achieve the homeownership dream but it will also open the door to job opportunities, community facilities, and more green spaces. By working together, we can make a real difference in this special part of the city.
Amy Rees CB, Homes England Chief Executive, said:
The agency is proud to support meaningful collaboration, powered by new funds, blended interventions and even deeper regional relationships, that mean once redundant spaces can become thriving places to live, work and grow for generations to come. We are working at pace with partners across Leeds and West Yorkshire, and in places across England, to accelerate housing and regeneration delivery for people the length and breadth of the country and to help boost economic growth.
Tom Bridges, Homes England Executive Regional Director for the North East and Yorkshire, said:
Leeds South Village is an example of how collaboration with multiple partners, coupled with essential, long term support to the sector, breeds confidence and breathes renewed energy into tailoring place-based solutions and realising a clear locally-led vision. It is so important to work closely with leaders and communities who know their area best to unlock progress, find solutions and create sustainable, high-quality homes and places that work for local people.
Lee Savage, Director at Caddick and project lead for South Village, Leeds, said:
The funding from Homes England marks a major milestone for South Village and Caddick’s aspirations for the Leeds’ South Bank, enabling us to move decisively into delivery.
The infrastructure works now getting underway are significant in both scale and complexity and will lay the foundations for the new neighbourhood, delivering essential roads, footpaths and cycleways, and unlocking the site for rapid onward development.
We’re proud to be working in close partnership with the Government, Homes England, Leeds City Council and the West Yorkshire Combined Authority to transform this long-derelict site into a vibrant, sustainable mixed-use neighbourhood for the city.
Councillor James Lewis, leader of Leeds City Council said:
The momentum we are seeing across the South Bank is clear. Between the ongoing works at Elland Road and now the progress here at South Village, we are transforming this area into a vibrant destination for residents and businesses alike.
With future milestones at sites like the Royal Armouries still to come, the scale of our ambition is becoming a reality. The progress and speed which we are making this happen is a testament to the power of partnership and the spirit of collaboration that defines our city.
Tracy Brabin, Mayor of West Yorkshire said:
Having a safe and secure home is a basic human right that everyone deserves, and this funding will help us support the delivery of thousands of much-needed homes for families.
Transforming disused land in Leeds South Village to build almost 2,000 new, high‑quality homes will help us deliver record numbers of affordable homes, create new thriving communities, as well as protect vital green spaces.
Devolution is working in West Yorkshire, and we remain committed to working with partners such as Homes England as we build a stronger, brighter region that works for all.
The Homes England grant is an example of how new funds and interventions launched earlier this year by the agency is supporting the sector, partners and local leaders at pace, with more tailored support, flexibility, longer-term funding and the ability to support delivery at scale.