August 2026
Sunderland City Council

Major step forward in Sunderland city centre’s journey as Homes England invests £27.7m to unlock Sheepfolds neighbourhood

A major step forward in the transformation of Riverside Sunderland has been confirmed, with Homes England, the government’s housing and regeneration agency, backing the Sheepfolds neighbourhood through a £27.7 million investment.

The investment will help to transform a former industrial site with a prominent riverside location that has remained largely underused for many years despite its strategic position close to the city centre.

The new funding, made through the agency’s Brownfield Infrastructure Land (BIL) Fund, will unlock the delivery of over 350 new homes at Sheepfolds – set to be the largest residential neighbourhood in Riverside Sunderland, with £10 million already invested from the North East Mayor to complement Homes England’s instrumental funding package.

The new neighbourhood supports Sunderland City Council’s wider ambition to deliver over 1,000 new homes across the city centre and forms part of the Riverside Sunderland Creative Mayoral Development Zone, playing a pivotal role in repopulating and reenergising the city.

The investment will enable the delivery of high-quality infrastructure and public realm across the neighbourhood, including new roads, utilities and active travel routes. This infrastructure is essential to support the residential development and enhance connectivity between the city centre and surrounding communities.

The work will build on the success of the Keel Crossing pedestrian footbridge, opened last year and unlocked by Homes England funding, which connects the planned housing development and popular nearby leisure venue Sheepfolds Stables to the heart of the city centre.

Tom Bridges, Executive Regional Director, North East, Yorkshire and the Humber, at Homes England, said: “Our long-standing partnership with the North East Mayoral Strategic Authority and Sunderland City Council continues to deliver real results for local people. This latest funding will enable delivery of the next phase of Riverside Sunderland, one of the most exciting and impressive regeneration projects in England. It will unlock much-needed new homes on brownfield land in the heart of Sunderland and create a vibrant new neighbourhood that connects people to their city centre.

“We’re building on the great momentum already created by the delivery of Keel Crossing and our wider regeneration efforts throughout the city, and we look forward to continuing to work with partners to transform the city centre for the people of Sunderland.”

Cllr Chris Eynon, Leader of Sunderland City Council, said: “We’re delighted to have secured funding from Homes England that will enable delivery of infrastructure and public realm that will accelerate housing delivery, improve connectivity, and ensure the neighbourhood is fully integrated with the city centre and surrounding communities.

“This investment marks another major milestone in delivering our vision for Riverside Sunderland. Sheepfolds is a key part of our plans to create new homes, jobs and opportunities in the heart of the city, and its connectivity to the former Vaux site, through to the high street and wider city centre means this is a vital next step in our journey to regenerate the whole urban heart of Sunderland.”

North East Mayor, Kim McGuinness, said:“Everyone deserves a safe, affordable home, and my Plan for Homes is a huge step towards making that happen. We’re committed to building 15,000 new social and affordable homes right across the region in the next decade.

“But we’re already investing to make that happen. We’re transforming derelict sites, like the one at Sheepfolds, with a vibrant new neighbourhood. It’s just shows that we’re ambitious with our plans for Sunderland whether that’s backing Crown Works Studios, regenerating the city centre or building new affordable homes.”

Share article
Article by
SCC_Logo_RED_RGB
Would you like to get in touch with
Sunderland City Council
Already a member?
Not a member? Learn about the benefits of membership.

Join us

We are a partnership created for anyone who shares a passion to celebrate and promote everything that can inspire Sunderland to become a vibrant place in which to live, work, study and play… and while we have achieved much, there remains much more to be done.