Sunderland City Council has taken a major step forward in its plans to revitalise the Sunniside district, after signing a pre-development agreement with Muse.
Through the ECF partnership, which is a joint venture between Homes England, L&G and Muse, Sunderland City Council and its partners will work together to shape the next phase of plans for Sunniside.
A design team will be appointed by the partners to develop a comprehensive masterplan for Sunniside with early indications suggesting there is potential to deliver more than 1,000 homes as part of a mixed-use neighbourhood featuring workspace, shops and community spaces.
Feasibility work is expected to continue throughout 2026 and subject to outcomes, the council and its partners will then look to move towards a full development agreement, enabling detailed funding and delivery proposals to come forward for key sites.
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.”
Sir Michael Lyons, chair of ECF, added: “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.
“Sunderland City Council has already played a leading role in driving change, acting as a catalyst for regeneration. Following the signing of the pre-development agreement, we will now work closely with the council, North East Mayoral Strategic Authority and other partners to develop a comprehensive masterplan and establish the right approach to support the next phase.”
Henry Kippin, chief executive officer of the North East Mayoral Strategic Authority, said: “Sunderland is already a national success story when it comes to urban regeneration, and the historic Sunniside district will play a key role in the next chapter, as we bring new homes, jobs and opportunities into the heart of the city through the Riverside Sunderland Creative Mayoral Development Zone.
“This is about backing the incredible creative talent we have in the North East, creating the spaces, opportunities and confidence for people to build their careers locally, and for our creative businesses to grow. With the MDZ set to boost the creative sector and unlock the next phase of Riverside Sunderland, including projects like the first phase of the Crown Works film studios, this is a real chance to help talent thrive and stay in our region.”
Jonathan Parker, development director at Pagabo, added: “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.”
