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A major Cardiff Capital Region (CCR) funding programme is transforming derelict land into new communities, delivering 2,500 homes, supporting more than 3,000 jobs, and reclaiming the equivalent of 132 football pitches of space across South-East Wales.
The £35 million Housing Viability Gap Fund (HVGF) has so far supported 14 housing developments across nine local authorities, tackling one of the biggest barriers to regeneration: the prohibitive cost of remediating brownfield sites that would otherwise remain undeveloped, and addressing housing need.
Nine projects have already fully drawn their funding allocation, with a further five in progress. All include affordable housing as part of their mix, with the overall proportion currently being finalised.
One of the most visible examples of the fund in action is Dragon Park, a 200-home mixed-tenure development in Abercanaid, Merthyr Tydfil. The site is now being released for sales and is marketed as Dol-Y-Ddraig.
Delivered by local builder Davies Homes with support from a £3.5 million CCR grant, the project sits within the Hoover Strategic Regeneration Area, a zone long associated with Merthyr’s industrial heritage. Work on site is well under way and will continue in phases until 2030, with 10 percent of the homes being delivered as affordable homes.
Mike Brough, Regional Growth Director at Cardiff Capital Region, said:
“The Housing Viability Gap Fund is unlocking land that has been empty for years and turning it into places people can call home. Across South-East Wales, this programme is converting 232 acres of derelict brownfield into 2,500 homes and thousands of jobs.
“At Dragon Park, we are seeing local builders creating high-quality, mixed-tenure housing that meets regional need and keeps economic benefit in the community.
“It is a perfect example of how CCR investment turns ambition into real-world outcomes. This is regional investment in action. It is practical, visible regeneration that connects our industrial past to our housing future.”
Matthew Davies, Managing Director of Davies Homes, added:
“Sites like Dragon Park are complex, but the support from CCR has made them viable.
“This is local people building for local families, creating homes, training and employment on a site that’s been underused for decades. By 2030, this part of Merthyr will look completely different.”
The CCR Housing Viability Gap Fund aims to bridge the financial gap that prevents brownfield or complex sites from progressing. It supports developments that include affordable housing and mixed tenure, helping to regenerate communities and attract further private investment.
