Hetton House was the birthplace of former MP Thomas Lyon and a former home of the Reverend John Nichol, the first rector of St Nicholas’ Church in Hetton.

It could now be converted into a number of new residential dwellings after planning applications were received by the council.

Councillor Mel Spedding, Sunderland City Council’s cabinet secretary, said: “Hetton House was sold in line with the council’s adopted and published disposal policy for the sale of surplus council buildings and the property was fully advertised on the open market.

“The sale price represented proper market value as confirmed by independent valuation advice.

“This price reflected the appropriate costs and values of the development proposals, including the substantial costs that any purchaser would need to spend to repair and refurbish the property which is a Listed Building.

“This sale is also dependent on an agreement with the developers that if the planned re-development work does not commence within the next two years, then the buildings will be returned to Sunderland City Council for the same price.”