Homes England has announced that it has entered into a building lease agreement with Vistry to deliver 750 new homes and a retail convenience store at the former City Hospital site in Birmingham.

The regeneration scheme will see the demolition of the majority of the existing hospital buildings to make way for 698 new-build homes, alongside the conversion of the former infirmary building to create a further 52 one- and two-bedroom apartments.

Vistry already holds planning permission for the construction of the 698 new homes and has recently secured additional consent for the infirmary conversion. Across the development, 35 per cent of the homes will be affordable housing, delivered through a range of tenures designed to meet local housing needs.

The redevelopment follows the full decommissioning of City Hospital, a process that required close collaboration between Homes England, Sandwell and West Birmingham NHS Trust and Birmingham City Council. Patients and staff have now relocated to the Midland Metropolitan Hospital, which opened in October 2024.

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Preparatory works at the site are already under way, with asbestos removal beginning in December 2025 to enable safe demolition. Construction is expected to start in the second half of 2026, with the first homes due for completion in early 2027.

Mike Goulding, Director of Development at Homes England said: "This development marks a new chapter for a historic site, bringing much-needed, high-quality homes – with over a third as affordable housing – to this part of Birmingham. We've worked closely with the NHS Trust, Birmingham City Council, and the local community to enable a smooth and safe transition from a working hospital to a site ready for demolition and construction.

"We're grateful to all our partners for their collaboration and we look forward to working with Vistry to deliver the first homes in this well-connected new community next year."

Cllr Nicky Brennan, Cabinet Member for Housing and Homelessness at Birmingham City Council, said: "This project is a fantastic example of what can be achieved when partners work together with a shared vision. By collaborating with Homes England, Vistry, and the NHS Trust, we are transforming the former City Hospital site into a vibrant community with high-quality homes, including 35% affordable housing.

"This development reflects our collective commitment to tackling housing challenges and marks a significant step forward in delivering much-needed affordable homes for Birmingham."

Michael Moore, Managing Director of Vistry North West Midlands, said: "This major regeneration scheme will transform a challenging brownfield site into 750 high-quality, mixed tenure homes and new commercial uses. We share the government’s ambition to deliver new homes at scale and pace, and by working closely with Homes England and Birmingham City Council we can create a vibrant, sustainable new community that will not only meet the housing needs of the area but will bring both regeneration and valuable investment into the city."

Image Credit: Vistry and IDP Architects LLP