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 £16m 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 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 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 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.

Lee Savage, director at Caddick and project lead for South Village, Leeds, said the funding now enabled the firm to “move decisively” into delivery of the project.

“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,” he said.

Tracy Brabin, mayor of West Yorkshire, added: “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.”

Tracy Brabin will be keynote speaker at the Delivering Infrastructure 2050 Conference, organised by the Association for Consultancy and Engineering (ACE), taking place on 30 June 2026 in London.

It will see the UK’s consultancy and engineering sector come together to tackle some of the nation’s most pressing infrastructure challenges, from delivering resilience and restoring nature to improving productivity and building a workforce of tomorrow. 

To book your place, click here