Birmingham City Council has secured a loan to help towards housing regeneration and renewal across the city – including on Kings Norton’s ‘3 Estates’ and in Druids Heath.
The £45 million loan has been agreed with life and pensions company Phoenix Life, based in Wythall.
The Birmingham Development Plan highlights the need to build 89,000 new homes across the city by 2031. After a lengthy and detailed consultation, the plan was approved by the government earlier this year.
The plan seeks to regenerate or renew existing council housing stock, as well as building new homes across Birmingham.
The housing redevelopment on Kings Norton’s Primrose Hill and Pool Farm estates will see 1400 new properties being built – 500 more homes than were there previously – alongside improved green space, a new supermarket and centre off Redditch Road, a ‘New Fold’ shopping area and a new youth centre. The Kings Norton Planning Framework scheme is expected to take 15 to 20 years to complete.
As part of the Birmingham Development Plan: “The Druids Heath Estate will be the focus of selective redevelopment and renewal to create a new neighbourhood, and deliver long-term social, economic and environmental improvements including over 500 homes.”
Phoenix Life has agreed to lend the council funds at mutually beneficial rates of interest, supporting the Company’s annuity investment strategy and enabling the Company to invest in its local community.
Chief Executive, Andy Moss said: “I am delighted that as a major employer in the Birmingham area, we have been able to arrange this deal. I would hope to see further projects of this nature in the future.”
Northfield MP Richard Burden said: “Birmingham City Council has reached a really forward-looking agreement here. We need new thinking to get investment into building the affordable homes that people in Birmingham need. This initiative by Birmingham’s Labour Council is an example of just that.”