Sunderland partners with Muse on Sunniside regen
A pre-development agreement has been signed to explore funding and delivery strategies for this part of the city centre, which forms part of the Riverside Sunderland Creative Mayoral Development Zone.
Sunderland City Council will work alongisde ECF, a partnership between Homes England, Muse, and L&G, to shape the next phase of plans for Sunniside, which has already seen successful schemes such as the Nile + Villiers housing development delivered following the launch of the council’s Sunniside Place Strategy in 2024.
The pre-development agreement was facilitated through the Developer-Led Framework, which Pagabo manages on behalf of Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust.
The next phase of work will see a design team appointed by the partners to develop a comprehensive masterplan for Sunniside, supported by planning and technical specialists. This work will include identifying priority sites that can help build early momentum for the partnership.
Early indications suggest there is potential to deliver more than 1,000 homes across Sunniside, helping to create a mixed-use neighbourhood with workspace, shops, and community spaces.
Feasibility work will continue throughout 2026 before the council progresses to a full development agreement, enabling detailed funding and delivery proposals to come forward for key sites.
Cllr 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 NEMSA, 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.”
