Birmingham City Council signs partner for £1bn Druids Heath regeneration of 3,500 homes

The development will include 1,785 affordable homes, including 400 for social rent. The agreement follows a turbulent period for the long-running estate regeneration.

Although the council’s planning committee approved the outline application in November, the High Court later quashed that approval after a legal challenge over the council’s failure to publish a full viability assessment.

The scheme has faced opposition from some residents, with concerns focused on the scale of demolition, the risk of displacement and whether the promised affordable housing will be delivered in a form that meets local need.

The council and Lovell said they will now begin working with the community to deliver early benefits, before returning to the council’s planning committee later in 2026.

Wide-ranging benefits are expected to include improvements to local transport links, community and business infrastructure, and green spaces, along with a boost to local employment, training and apprenticeship opportunities.

Simon Wingate, project director at Lovell, said: “We are very pleased to have reached this important milestone in our partnership with Birmingham City Council, and we look forward to unlocking opportunity across Druids Heath together.

“Our focus is to hit the ground running and deliver early benefits for the community, through local job and training opportunities, improvements to shared spaces and collaborative work with local organisations.

“For more than three decades, Lovell’s active role in the city has been driven by a community-led approach. Across Druids Heath, this commitment will ensure local aspirations and needs help to shape a positive future for current residents and generations to come.”

Lovell has previously worked on estate renewal projects including the Woolwich Estates in London, the Compendium Living joint venture with Riverside in Liverpool and Derby, and the Castle Vale regeneration programme in Birmingham.

Paul Langford, executive director for city housing at Birmingham City Council, said: “The partnership agreement provides a legal guarantee that 51% of the homes on the scheme will be affordable. This is something that the council has long maintained a commitment to, and I am pleased we can now provide this reassurance to our residents.

“All of the existing council tenants on the estate will be provided for, and this promise also forms part of our legally binding agreement with the developer.”

The council said the remaining affordable homes would be delivered through a partnership agreement with another provider and Homes England.