Major development of 600 new homes in Sunderland area revealed amid plans to cut car use

Sunderland City Council has submitted an application to its own planning department for land at the Sheepfolds Industrial Estate, which is earmarked for a major transformation under regeneration plans.

The Riverside Sunderland urban regeneration project includes a new pedestrian footbridge over the River Wear connecting Sheepfolds to the former Vaux site, which is nearing completion, as well as road and footpath improvements, cycle routes and new public realm.

There have been plans for housing in the Sheepfolds area for some time, with the phased demolition of old industrial units already under way on the site to prepare it for development and CGI images have previously been released showing how a new residential community could look.

In recent months, Sunderland City Council announced Vistry Group would be the preferred developer for the new residential community at Sheepfolds comprising up to 600 new homes, alongside new commercial and community spaces, as part of council plans to boost the city centre’s population.

A planning application for the site was submitted at the end of June, 2025, but was only ‘validated’ by council planners this week, and has now appeared on Sunderland City Council’s planning portal website.

The hybrid planning application is seeking “full planning permission for the demolition of 38 industrial units (part-retrospective)”, as well as full planning permission for “enabling works to facilitate the development of plots four and five” on the site.

In addition, the planning application is seeking outline planning permission for “proposed phased development for up to 600 homes of residential accommodation” along with a “mobility hub”, “up to 1,750sqm of commercial space”, associated infrastructure works and “associated mitigation.”

Hybrid planning applications are normally used in large developments to allow works to progress on part of a site while the complete details of other phases are still being finalised.

Council planning documents state 29 buildings have been demolished to date at the Sheepfolds Industrial Estate and that “there are currently nine remaining industrial units on site for which this application seeks permission to demolish”.

The outline element of the plan (for housing and commercial units) would see “all matters reserved except for access”, which means a further reserved matters application or applications would be needed in future before works can start setting out details of the new buildings in terms of scale, appearance and design.

As the hybrid planning application is now ‘live’ on Sunderland City Council’s planning portal website, members of the public can view the large number of supporting documents and leave comments on the scheme.

A design and access statement submitted with the plan notes the “indicative schedule of accommodation” at the development’s outline stage shows a housing mix of one-bedroom, two-bedroom and three-bedroom apartments, two-bed duplexes and three-bedroom and four-bedroom “family sized townhouses with private gardens”.

It adds that a “key strategy for the development is to suppress car ownership for residents at the development by providing levels of car parking below council standards”, with an aim of “promoting the sustainable image and urban setting of the scheme, whilst prioritising pedestrians and cyclists” and designing the scheme to “keep vehicles out of sight”.

Planning documents confirm the “residential proposals are for a maximum of 400 spaces for 600 residential units” and that “electric vehicle (EV) parking will be provided at 20 per cent of the total parking provision” with “a further 20 per cent of the remaining spaces enabled for future conversion to EV charging”.

Vehicle access to the site would be taken from one point at the north (Stadium Way) and two points to the east (Millennium Way, Sheepfolds North), with “controlled access primarily for residents, servicing, and emergency vehicles”.

The design and access statement also notes that the housing development would benefit from pedestrian and cyclist access points, ensuring “physical and functional connections between Sheepfolds, Stadium Park and surrounding areas” and “direct routes” to St Peter’s Metro Station and nearby bus stops.

Elsewhere, commercial units are expected to be located on the “ground floor of the mobility hub, ground floor of the northern plots and ground floor to the western plot”.

The design and access statement notes the commercial uses “will be subject to [a] subsequent detailed design and reserved matters application” but that uses could include retail, food and drink, medical or health services and a creche or day nursery.

The supporting document adds: “The proposal regenerates, restores and repurposes a large area of degraded former industrial land on the north side of the city centre.

“The illustrative site layout establishes the guiding principles for development including height, massing and form.

“Informed by both historical and contemporary street patterns, the masterplan vision seeks to create a dense, walkable neighbourhood.

“The masterplan sets a clear and deliverable phasing strategy that works with existing site infrastructure and brings a streetscape and place of character and authenticity.”

A planning statement submitted with the hybrid planning application notes the plans would “deliver up to 600 new residential units in a highly sustainable location which will assist in meeting the council’s housing needs and targets”.

It was also noted that the plans would “complement the enhancement of the Riverside Park and public realm spaces” and provided an “opportunity to provide high-quality landscaped play areas and residential amenity spaces, offering direct benefits to residents.”

An affordable housing statement submitted to council planning officials also states “it is not possible at this stage to give a number, tenure mix, or location of affordable housing units within the proposed development”.

However, a financial viability review in respect of the development, referenced in the supporting affordable housing document, notes the proposed scheme has “significant viability challenges and will require additional grant funding in order to be delivered”.

The council’s affordable housing statement adds: “The applicant confirms their understanding of the importance of affordable housing provision and this will be thoroughly considered once ownership details and plot-specific development proposals are confirmed and become available.”

Housing plans for the Sheepfolds site were recently discussed by councillors on the Economic Prosperity Scrutiny Committee on April 1, 2025, at City Hall during an update on regeneration projects in the city.

A presentation to the scrutiny panel said a “competitive dialogue procurement process” was launched in July, 2024, to find a developer for the Sheepfolds Neighbourhood and that the approval of a preferred developer was expected in May, 2025.

It was noted at the time (April, 2025) that a second phase of ground investigation surveys started in March, 2025, to “enable remediation activity to commence as soon as possible following [the] granting of planning consent.”

The city council has since confirmed that 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.

A decision on the hybrid planning application will be made following a council consultation exercise.

Sunderland City Council’s planning portal website lists a decision deadline of November 4, 2025.

For more information on the plan, or to track its progress, visit the council’s planning portal website and search reference: 25/01416/HY3