The initial 132 homes will signal the start of a phased plan which will eventually deliver four new neighbourhoods, housing 2,500 residents at Riverside Sunderland.

The first phase will be overseen by igloo Regeneration and be built using the latest technology and methods of construction.

Igloo’s chief executive, Peter Connolly, said: “The people of Sunderland have really embraced what we’re trying to do at Vaux, so planning approval is a massive step forward for the city and its focus on sustainability, and on its vision to be carbon neutral by 2040.

“The world has changed so much in the last year, people value their homes more, and recognise how important low carbon and smart technology will be as our lifestyles change, as well as the benefits to our own wellbeing and that of local wildlife.

“We believe that what we have planned for Vaux will continue to embrace this realignment that communities and individuals are facing in terms of true work/life balance, localisation and wellbeing as we emerge from the pandemic.”

Peter McIntyre, executive director of city development at Sunderland City Council, said: “We’re aiming for something really different at Vaux – homes that will not only change the city centre, but that will transform the way our residents live.

“We’re delighted to have taken this important step forward, which paves the way for the first new residential neighbourhood, that will be completed by 2023, in time for our Future Living Expo, an event where we will showcase and celebrate new ways of living and the role new innovations can play in delivering a better quality of life for our people.”

Key highlights of the council’s masterplan for Riverside Sunderland include:

• One million sq ft of modern office space, in a new central business district, providing 8-10,000 new jobs
• A new city centre site for Sunderland’s Eye Hospital
• Plans for a state-of-the-art library and community hub – the Culture House – that will attract tens of thousands of visitors a year to a new site in Keel Square
• The upgrading of St Mary’s Boulevard into a stylish new city street
• Transformation of Galley’s Gill into a superb landscape park, and new green spaces in the heart of the city
• Smart City infrastructure, that will make Sunderland an even better place to live, work and play.