Sunderland signs deal to regenerate Sunniside area

Sunderland City Council has signed a pre-development agreement with Muse to transform the Sunniside area of the city.

The strategy includes plans for new homes, workspaces, shops, and community facilities, in a neighbourhood that integrates Sunniside’s heritage buildings and supports its creative economy.

A masterplan will be developed by an appointed design team, who will identify key sites for early development.

Initial estimates suggest more than 1,000 new homes could be delivered in the area.

Councillor James Jackson, cabinet member for business, housing and regeneration at Sunderland City Council, said: "Sunniside has enormous potential and a critical role to play in the story of Sunderland.

"It is one of the most distinctive and culturally rich parts of our city centre and following the launch of the Place Strategy in 2024, we want to focus on addressing the challenges that have held the area back.

"This partnership represents a significant step forward.

"By working with experienced partners like Muse and ECF, we can accelerate delivery of our place strategy to support the city's economic prosperity by building new homes, strengthening local businesses and creating an exciting and creative neighbourhood that people want to be a part of."

The agreement is part of the council’s Sunniside Place Strategy, launched in 2024, and builds on existing projects such as the Nile + Villiers housing development and the National Esports Performance Campus.

Sir Michael Lyons, chair of ECF, said: "Sunniside's potential has long been recognised by the council and the local community, and this next stage will be key to unlocking it.

"We are excited to help unlock the next chapter for a neighbourhood with a strong history of enterprise and creativity, as the city's original business centre."

If feasibility work is successful, the partnership will move towards a full development agreement.

This would enable detailed funding and delivery proposals for priority sites to be brought forward.

Jonathan Parker, development director at Pagabo, said: "This appointment demonstrates how the Developer-Led Framework can support complex regeneration projects, enabling Sunderland City Council and its partners to move forward with confidence and pace."