Government announces £30m backing for Sunderland homes and jobs development

Backing from the North East Combined Authority and another Government programme means £42m is going into Riverside Sunderland

A scheme in Sunderland that aims to create thousands of jobs and hundreds of new homes has been backed with nearly £30m of Government funding.

Sunderland City Council and Homes England have agreed a £29.75m funding package for the Riverside Sunderland masterplan, to which the council has already committed £49.94m. The project aims to create around 1,000 new homes and one million sq ft of employment space that could create between 8,000 and 10,000 new jobs.

The funding - which has helped to bring in more than £600m from private investors - will be put towards works on the New Wear footbridge and the creation of connections between the new residential development sites at Sheepfolds, Vaux and Farringdon Row. The funding is helping to leverage significant private sector investment, with contributions from Canada Life, Legal and General, and Placefirst Limited forming part of over £600m already invested in the Riverside Regeneration programme.

A further £8.13m from the North East Combined Authority’s Brownfield Housing Fund and £4.03m from the Ministry of Housing, Communities and Local Government’s Brownfield Land Release Fund has also been pledged.

It comes after Homes England last week signed a strategic partnership with the North East Combined Authority to create new homes around the region, following earlier backing for developments in Newcastle and Sunderland.

Sunderland City Council leader Michael Mordey said: “Sunderland is growing its reputation as one of the most ambitious and innovative local authorities in the country, leveraging public and private sector investment to deliver a world-class place to live, work and play. Securing investment on this scale is only possible because we commit and then deliver – time and time again – and this is a fantastic vote of confidence in our plans for a dynamic, vibrant new urban residential district. We’re proud to be leading this from the front.”

North East mayor Kim McGuinness said: “Everyone in our region should have a home to feel proud of, which is why I’ve made housing a central pledge of my term in office. Alongside Sunderland City Council, we are investing in Sunderland Riverside because we need more good quality homes in the North East, and particularly more social housing.

“It is fantastic to see Sunderland Riverside taking shape and know that right at the heart of this growing, thriving city we will be building the best quality homes for local people to live in.”

Homes England chief executive Peter Denton said: “Riverside Sunderland embodies how it’s possible to breathe new life into a place of huge historical significance for the area, and I’m very happy the agency can support what is a strong, locally-led vision to become a reality.

“It’s our job and privilege to help put these plans into action by providing funding and wider expertise, working hand in glove with local leaders to create a sustainable, high-quality place that really works for people. The funding announcement signals the latest commitment to long-term partnership between Homes England and North East local authorities, galvanised by the announcement of a Strategic Place Partnership between the agency and North East Combined Authority on October 11.”

Nationally, the Government has announced funding of £68m that will go directly to 54 councils to turn neglected land into new homes. Prime Minister Sir Keir Starmer said: “I said this Government is on the side of the builders, not the blockers. And I meant it. This funding for councils will see disused sites and industrial wastelands transformed into thousands of new homes in places that people want to live and work. Our brownfield-first approach will not only ramp up housebuilding but also create more jobs, deliver much-needed infrastructure, and boost economic growth across the country.”