COMMENT Birmingham’s golden years aren’t ahead of it, they are already here.
The construction of 103 Colmore Row – the city’s tallest office building – alongside the forthcoming Commonwealth Games, the regeneration of Paradise and Digbeth’s evolution into a cultural capital for creatives and entrepreneurs are all symbols of the city’s meteoric rise.
It has cast off the dated misconceptions of being a brutalist concrete jungle surrounded by congested roads, and is now a cosmopolitan city, renowned globally as a location for business and leisure, with high-quality infrastructure and buildings to match.
The arrival of major firms such as Goldman Sachs and the consolidation or relocation of other firms’ presence in the city, including HSBC and BT, are driving a wave of new employment and economic growth. There’s also a flourishing independent business community in the city’s core and expanding out into the suburbs of Greater Birmingham.
A key driver of the city’s growth has been ambitious and forward-looking development. Whether through large-scale regeneration, as seen in the city’s Gun Quarter and at Paradise, restoration projects such as the refurbishment of the iconic Grand Hotel, or the arrival of the HS2 Curzon Street station, developers, investors, operators and local government are all contributing to the city’s success.
Residential development
One area where Birmingham has historically lagged is residential development. Research from JLL estimates that to match population growth, 4,000 new homes need to be delivered in the city every year for the next 10 years. However, its analysis also reveals the average yearly supply of new homes created over the past 10 years has been 900.
This undersupply has at times locked the city and surrounding areas’ property market.
Younger people, including first-time buyers, have faced challenges renting or purchasing homes in the city centre. The knock-on effect of this has been people being unable to take the next step on the ladder – upsizing and moving into the suburbs, for example.
While this challenge is not exclusive to Birmingham, the shortage of residential property has been a limiting factor in the city’s growth. Fortunately, this is now changing.
Deloitte’s latest Birmingham crane survey revealed 18 new developments were started across the city centre in 2021 – nearly double the 10 recorded in 2020. Of the new schemes coming forward, 14 were residential. This represents a 250% jump year-on-year.
The arrival of national developers, including Berkeley Group, Moda Living and MEPC is accelerating housing delivery. Institutional investors, such as Legal & General, are also now funding and supporting high-quality and desirable development projects across Birmingham.
Economic stimulus
An uplift in residential development is key to making accommodation more accessible, with a mixed tenure of homes now being delivered, including build-to-rent, for-sale and affordable housing.
It is also helping to regenerate and bring an economic stimulus to new parts of the city centre and Greater Birmingham, as demonstrated by the growing number of successful brownfield projects helping breathe new life into underutilised or derelict sites.
Take developer BPG, for example. It is leading a scheme on 2.5 acres of vacant land in the city’s Southside – a site currently occupied by low-rise industrial buildings – with plans to create 456 apartments, 5,500 sq ft of commercial space and a landscaped courtyard.
Waterfall effect
The Commonwealth Games and arrival of HS2 represent significant opportunities. Birmingham City Council estimates the Games alone could support the creation of around 4,500 jobs, with £750m contributed to the economy.
However, the real potential of these events lies in the development connected with them.
Birmingham’s Eastside and Digbeth are both good cases of where areas are already benefiting from the “waterfall effect” of HS2 – with the future infrastructure bringing a wave of regeneration, development and growth to the city quarters.
True success will, however, be in ensuring the growth currently seen in the city centre and its peripheries is high quality, sustainable and enduring, while spreading across Greater Birmingham and the wider West Midlands.
The £700m Perry Barr masterplan adopted in February 2022 shows how these events can be used as a catalyst for wider change. The same approach must be adopted across the region, with the public and private sector partnering on new investment and development.
This will be the difference between Birmingham enjoying its moment in the spotlight or creating a legacy that delivers on the council’s Future City Plan and its aim to create “inclusive growth that meets our diverse needs, and maximises the potential of all Brummie communities”.
Patrick Garner is a partner and head of Shoosmiths’ construction practice
