A preferred contractor has been appointed to take forward a major city centre residential regeneration scheme.

Vistry Group is set to develop the new Sheepfolds neighbourhood at Riverside Sunderland, increasing the firm’s presence in the city where it is currently delivering 250 new homes at West Park Quarter on the site of the former Civic Centre, under its Linden Homes brand.

The Sheepfolds neighbourhood will include up to 600 new homes, alongside new commercial and community spaces, to support the local authority’s ambition to re-populate the city centre as part of its social and economic regeneration strategy.

The first phase of development is expected to start in early 2026, following the completion of infrastructure and enabling works to prepare the site.

Vistry North East’s scheme, which has been designed by North East architects Faulknerbrowns, will provide a variety of townhouses, duplexes and apartments on land between St Peter’s Metro Station and the soon to be completed Housing Innovation and Construction Skills Academy (HICSA).

The scheme will also include the construction of a new mobility hub providing car parking, EV charging, cycle storage, and other mobility services to support the new Sheepfolds community.

Phase one of the Sheepfolds Neighbourhood is backed by £4.8m of Brownfield Housing Fund grant which is being administered by the North East Combined Authority.

Sean Egan, regional managing director of Vistry North East, said: “Sheepfolds is a transformational regeneration opportunity for Sunderland and we are very pleased to be working in partnership with the City Council for the second time to deliver its ambitious and exciting vision for this thriving new neighbourhood. As the Ƶ’s largest provider of affordable mixed tenure homes and a leading regeneration business.

"This is exactly the type of project that we relish – transforming brownfield land into vibrant new neighbourhoods that provide a choice of quality new homes whilst bringing social and economic investment into the local community.”

Coun Kevin Johnston, portfolio holder for housing, regeneration and business at Sunderland City Council, said: “This transformational development will provide access to high quality sustainable new homes, with an unrivalled and aspirational quality of life, while providing a major boost to the city centre economy.

“By working with a North East based developer to deliver the scheme, it will ensure that we are delivering maximum value for local people, creating new career opportunities, and maximising expenditure in the regional supply chain.”