Partnership agreement marks step forward in £1bn regeneration of Druid’s Heath estate in Birmingham
Birmingham City Council and Lovell have entered into a partnership agreement on the £1bn regeneration of Druid’s Heath in the south of the city
· Around 3,500 new homes are set to be delivered over 20 years
· 51% of these homes will be affordable
· Lovell brings expertise of delivering complex and sensitive estate renewal projects across England, and will work closely with the Druid’s Heath community to ensure the benefits have widespread, lasting impact
· The project, and the opportunities it brings for Birmingham and the West Midlands, will be discussed at UKREiiF in Leeds from 19-21 May
Birmingham City Council has entered into a formal partnership agreement with national partnerships housing specialist, Lovell, to lead the £1 billion regeneration of the Druid’s Heath estate in the south of the city.
The partnership agreement signing marks a significant step forward in the revitalisation of the estate, after Lovell was confirmed by the Council’s Cabinet as its preferred development partner in January 2026, following a competitive process.
The proposals for Druid’s Heath will see around 3,500 new homes delivered over a 20-year period, of which 1,785 will be affordable. 400 of these affordable homes will be built for social rent.
Birmingham City Council has long held a commitment to ensure 51% of the homes on the scheme are affordable; the signing of the partnership agreement marks the delivery of that promise.
Lovell brings significant experience of estate renewal to Druid’s Heath, having led complex and sensitive regeneration projects across the country, providing good quality, affordable and energy-efficient housing for thousands of residents.
Projects include the Woolwich Estates in London, which delivered over 1,500 new homes alongside neighbourhood improvements; the Compendium Living joint venture with registered provider Riverside, delivering large scale regeneration projects across Liverpool and Derby over 20 years; and crucially, Castle Vale in Birmingham, where Lovell has been involved for over 25 years delivering new family homes within the estate regeneration programme.
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.”
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 partnership agreement between Birmingham City Council and Lovell includes a strong commitment to working with the Druid’s Heath community so that the regeneration proposals meet the needs and priorities of current and future residents. Alongside the new housing, the scheme will include improvements to local transport links, community facilities, business premises and green spaces.
The Council and Lovell will begin working with the community to deliver some early benefits, ahead of returning to the Council’s planning committee later in 2026.
These benefits will include local employment, apprenticeship and training opportunities, exploring early improvements to shared spaces and facilities, and an extensive programme of community involvement to help shape the next steps for Druid’s Heath with residents and local organisations.
The Council and Lovell will discuss the opportunities the Druid’s Heath regeneration offers Birmingham and the wider West Midlands region at the UKREiiF property, regeneration and investment showcase in Leeds from 19-21 May.
