Plan for £2.2bn housing project collapses

Plans to build more than 10,000 homes as part of a £2.2bn project to revitalise a city centre neighbourhood have collapsed.

Birmingham City Council said it had "mutually agreed" to part ways with developers Berkeley St Joseph after rising costs had made the plans in Ladywood unviable.

The scheme, for which a masterplan had taken seven years to develop, included new homes, improved transport links and more green spaces.

It had faced opposition from some residents who last year told the BBC they felt "confused" and "isolated" over a lack of "genuine consultation" with the community.

The council said regeneration of the area would continue but its approach would change.

Lee Dargue, a campaigner in Ladywood, said the announcement on Monday had brought relief to many of those left in limbo.

"The whole thing has been such a drag on people's mental health, their wellbeing. Their lives have been put on hold," he said.

Work to refurbish tower blocks and potentially demolish hundreds of homes was set to begin in 2028 at the earliest.

Some homeowners had previously said they were worried they could be forced to move, while Dargue claimed some were living in "appalling conditions", including homes affected by water leaks and mould.

He added communication with residents had been a significant problem previously.

"They just weren't being listened to," he said, calling for "a reset" in how residents would be consulted in future.

The council said it "intends to begin a new conversation with residents" about the future of the scheme, including feedback from its scrutiny committee.

Increased construction and regulatory costs, plus a "more challenging housing market and economic climate", had put "significant pressure" on the proposals, the council and developer said.

The authority's housing director, Paul Langford, and Berkeley Group's divisional managing director, Stephen Kirwan, apologised that the programme could not continue and described the news as "deeply disappointing".

They said the scheme remained a "once-in-a-generation opportunity to invest in the estate and create a Ladywood that benefits current and future generations".

The council added that delivering affordable homes was a priority and it would "continue to engage with residents, community organisations and local stakeholders".

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