This will regenerate a former industrial site on the River Wear and create a large residential neighbourhood called Sheepfolds.

North East Mayor Kim McGuinness has already invested £10m to complement the Homes England package.

This partnership includes a joint Major Projects Delivery Unit — bringing together expertise and resources of the North East Mayoral Strategic Authority, Homes England and local authority partners.

“This latest funding will enable delivery of the next phase of Riverside Sunderland, one of the most exciting and impressive regeneration projects in England,” said Tom Bridges, executive regional director for North East, Yorkshire and the Humber at Homes England.

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“It will unlock much-needed new homes on brownfield land in the heart of Sunderland and create a vibrant new neighbourhood that connects people to their city centre.

“We’re building on the great momentum already created by the delivery of Keel Crossing and our wider regeneration efforts throughout the city, and we look forward to continuing to work with partners to transform the city centre for the people of Sunderland.

“Councillor Chris Eynon, leader of Sunderland City Council, added: This investment marks another major milestone in delivering our vision for Riverside Sunderland.

“Sheepfolds is a key part of our plans to create new homes, jobs and opportunities in the heart of the city, and its connectivity to the former Vaux site, through to the high street and wider city centre means this is a vital next step in our journey to regenerate the whole urban heart of Sunderland.”