The transport department has launched a new firm to build up to 40,000 new homes for first-time buyers on old railway land, by kickstarting £1bn of development over the next decade.

Platform4 will sell surplus rail land and seek private investment to provide homes for renters, or people who want to own their first property. 

The department says neighbourhoods in cities such as Manchester, Newcastle, Nottingham and Cambridge will be boosted by new homes, green spaces, shops and hotels – “creating thousands of jobs”. 

The new firm plans to create 15,000 new homes over the next five years. 

The new firm is a combination of London and Continental Railways and Network Rail’s property team, which previously acted independently to manage various aspects of surplus rail land across the UK.

The government-owned property company will be led by chair Bek Seeley, who is tasked with attracting more than £350m of private sector funding. 

Seeley has previously led Lendlease’s development business in Europe and now works in various roles supporting complex regeneration projects across the UK. She is also chair of the Euston housing and regeneration delivery group. 

The move is part of the government’s plan to build 1.5 million homes over the next five years. 

The firm has earmarked four sites for early development, which aim to build 2,700 new homes across brownfield land: 

• Newcastle Forth Goods Yard: opportunity for up to 600 new homes and unlocking additional new homes    

• Manchester Mayfield: opportunity for 1,500 new homes    

• Cambridge: a mixed-use development with 425 homes    

• Nottingham: 200 new homes following 348 successfully delivered homes at The Barnum 

Transport Secretary Heidi Alexander (pictured) says: “Platform4 will breathe new life into these spaces”.  

She adds: “Our railways are more than just connections between places – they create economic opportunity and drive regeneration.” 

Seely says: “Platform4 will deliver on key government priorities, creating new homes and jobs and stimulating economic growth. 

“Working alongside our partners and local authorities, we will create sustainable places that bring communities and customers together and leave a positive legacy for future generations.”