Riverside Sunderland to become Mayoral Development Zone
Following the launch of Newcastle and Gateshead as the first MDZ in September, Sunderland has been selected as the North East Combined Authority’s second partnership to drive the next phase of regeneration along the River Wear.
At its meeting on 9 December, NECA will be asked to approve the creation of the Riverside Sunderland Creative MDZ, a long-term partnership with Sunderland City Council designed to accelerate development and attract private and public investment.
The zone would receive up to £300,000 in revenue funding from the North East CA Investment Fund, matched by Sunderland City Council, to support initial work.
Homes England is being invited to join as a strategic partner and co-investor for the plan, which will focus on large-scale housing delivery, creative industries growth, and inner-city renewal across Sunderland.
The proposed MDZ aims to unlock a wide pipeline of construction and regeneration activity, including:
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Major housing development across neighbourhoods such as Deptford, Old Sunderland, Sunniside and St Peter’s, potentially delivering thousands of new homes, both market and affordable.
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Completion of outstanding projects from the 2020 Riverside Sunderland masterplan, including the Vaux and Sheepfolds neighbourhoods and a new mixed-use high street scheme with Capital & Centric.
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Crown Works Studios Phase 1a, planned to deliver four sound stages and around 230,000 sq ft of production space to grow the region’s film and TV industries.
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Public realm and connectivity schemes, including improved transport links and riverside open-space upgrades along the Wear corridor.
The MDZ will also guide the emerging Riverside Sunderland 2040 vision, expanding the original 82-acre regeneration area to create a walkable inner-city district stretching from the Northern Spire bridge to the coast.
The new proposals follow significant progress since the launch of the Riverside Sunderland masterplan in 2020, which has secured more than £560m of investment, including more than £250m from the private sector.
Completed or near-complete projects include City Hall, the Maker & Faber office developments, Keel Crossing bridge, the 265-home West Park neighbourhood, the new Culture House (opening 2026), and the Housing Innovation & Construction Skills Academy.
Work already under way includes the new Eye Hospital, the Vaux residential area, Farringdon Row homes and the restoration of Galley’s Gill as an urban park.
A new Riverside Sunderland Creative MDZ Board, bringing together NECA, Sunderland City Council, Homes England and other partners, would set strategy, coordinate investment and oversee delivery.
Further funding requirements for housing, infrastructure and studio development will be set out in a three-year investment prospectus and subsequent annual business plans.
Any additional NECA investment in MDZ projects would be subject to the Combined Authority’s assurance framework.
The MDZ approach is intended to deepen collaboration between regional and local partners, accelerate site delivery and strengthen the case for further government and private-sector funding.
NECA says the initiative aligns with its wider goal of supporting regeneration across the region’s major urban centres.
If approved, the new development zone will sit alongside the existing Newcastle-Gateshead MDZ, with a similar proposal for Durham expected in due course.
