Vistry Group has been appointed preferred developer of the new 600-home Sheepfolds neighbourhood at Riverside Sunderland.

It means Vistry North East is expanding its 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 comprise up to 600 new homes, alongside new commercial and community spaces, which will support the council’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 which will prepare the site for residential development.

Vistry’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 being supported 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.”

Kevin Johnston, portfolio holder for housing, regeneration and business at Sunderland City Council, added: “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.

“It is yet another major step forward for Riverside Sunderland, which is fast establishing itself as the UK’s most ambitious urban regeneration project.”

Riverside Sunderland is transforming 32 hectares of brownfield land spanning the River Wear.

The four new residential communities will deliver around 1,000 new homes, new social venues and green open spaces.

Four Grade A office buildings have already been constructed across the site, as has City Hall, the 120-bedroom Holiday Inn, the Riverside Multi-Storey Car Park several high-quality bars and restaurants and the Sheepfolds Stables leisure development.

Work is also progressing on the New Wear Footbridge, a world-class new Eye Hospital, Culture House, the Housing and Innovation Construction Skills Academy (HICSA), and a new Riverside Park, with consultation also underway on plans to transform High Street West.

Once complete, it is estimated that the multi-billion-pound development will create more than 10,000 new jobs, homes for 2,500 new residents and significantly increase the number of people visiting the city.