Two new neighbourhoods are to be developed in Sheffield thanks to a £67m funding boost providing 1,300 new homes in the city.

Furnace Hill and Neepsend will be transformed into two characteristic neighbourhoods, and the developments also plan to improve connections between the city centre and Kelham Island.

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.”

The redevelopment of Furnace Hill will include residential homes alongside new local facilities, a new public realm will also be created aiming to display the industrial heritage of the area.

The neighbourhood at Neepsend, which lies beside the River Don, will provide additional housing, local communities, and green spaces. 

Councillor Tom Hunt, Leader of Sheffield City Council, said: “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 the future.

The redevelopment of Furnace Hill and Neepsend adds to various projects reshaping Sheffield city centre, such as the £470m Heart of the City II centred around Cambridge Street.

Mr Denton added: “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. 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.”

The Sheffield City Council now also aims to transform the former home of Castle Market into a park and events space, and also reveal the remains of Sheffield Castle, which is the birthplace of the city.