Homes England announced on 6 August 2026 a £27.7 million investment in Sunderland's Sheepfolds neighbourhood, a former industrial site intended to become the largest residential neighbourhood within Riverside Sunderland with more than 350 homes. The agency said the North East Mayor had already invested £10 million alongside its funding package.

Tom Bridges, Homes England's Executive Regional Director for the North East, Yorkshire and the Humber, said the funding would enable the next phase of the regeneration project and unlock new homes on brownfield land. Councillor Chris Eynon, Leader of Sunderland City Council, said the money would support infrastructure and public realm work intended to accelerate housing delivery and improve connectivity.

North East Mayor Kim McGuinness restated a commitment to building 15,000 new social and affordable homes across the region over the next decade. The announcement said the neighbourhood would support the council's ambition for more than 1,000 new homes across the city centre, with funding for roads, utilities and active travel routes.