"Birmingham City Council and Berkeley have reluctantly agreed to terminate the development agreement for the Ladywood Regeneration Project.
“This difficult decision comes after seven years of work to establish a partnership and masterplan to deliver over 10,000 much needed homes, upgraded existing social housing and unlocked a range of benefits for the local community and wider city.
“Increased construction and regulatory costs and a more challenging housing market and economic climate have placed significant pressure on the viability of the programme.
"Rather than continue with uncertainty and delay, both organisations believe it is better to exit the partnership in a constructive and agreed manner.
“While the partnership is coming to an end, Birmingham City Council remains fully committed to the regeneration of Ladywood. The Council intends to begin a new conversation with residents at the earliest opportunity about the future of the estate.
“We appreciate that this news will be deeply disappointing for many local people who have committed their time and energy to the regeneration of Ladywood. We greatly appreciate the contributions of the local community throughout the process, and we are very grateful to everyone who has taken the time to engage with us and share their views. We are sorry that the programme cannot continue as planned.”
The council has emailed residents subscribed to its regeneration newsletter to share a letter about the scheme's future. This letter is being printed and will be distributed to Ladywood residents in the next few days.
As a resident of Ladywood, we wanted to update you about an important change to the partnership between Birmingham City Council and Berkeley St Joseph and what this means for the regeneration of Ladywood.
Both Birmingham City Council and developer Berkeley St Joseph have mutually agreed their intention to part ways and exit their development agreement for the Ladywood regeneration scheme and bring their partnership to an end.
This has been a difficult decision for both organisations, and it has been made reluctantly, with all avenues for delivery being explored.
The decision reflects the fact that the current regeneration proposals are no longer viable for the partnership to deliver.
Why the current partnership is coming to an end
Over recent months, Birmingham City Council and Berkeley St Joseph have worked closely together to review the scheme and explore every possible option for making the current proposals deliverable.
Birmingham City Council and Berkeley St Joseph have jointly concluded that we have been unable to agree a development proposal that is capable of being delivered through the current partnership arrangements.
Increased construction and regulatory costs and a more challenging housing market and economic climate have placed significant pressure on the viability of the programme.
Rather than continue with uncertainty and delay, both organisations believe it is better to exit the partnership in a constructive and agreed manner. This will allow Birmingham City Council to work with residents to consider the right approach to the future regeneration of Ladywood.
The regeneration of Ladywood will continue
While the partnership is coming to an end, Birmingham City Council remains fully committed to the regeneration of Ladywood. Regeneration is not ending but the way in which it is taken forward will now have to change.
The Council intends to begin a new conversation with residents at the earliest opportunity about the future of the estate. This will include considering the feedback and recommendations from the Council's scrutiny committee and ensuring that residents have a meaningful opportunity to help shape what comes next. We want any future proposals for Ladywood to be grounded in the views, priorities and experiences of the community.
Delivering genuinely affordable homes remains a key priority for the council. A good quality, safe place to call home, in a location that is connected and well developed, is the fundamental foundation needed for a decent life. One that all Ladywood residents deserve.
We recognise that many residents will feel frustrated and deeply disappointed by this news and by the delay it represents.
However, we must take the time to ensure we get this right for the residents of Ladywood. The scheme remains a once in a generation opportunity to invest in the estate and create a Ladywood that benefits current and future generations.
We know how important this project is to everyone who lives and works in Ladywood, and we would like to thank all those who have taken the time to share their feedback, ideas and thoughts so far.
Keeping you informed
Throughout this process, the council will continue to engage with residents, community organisations and local stakeholders.
The council's immediate priority is to work with the community to identify the right route forward to deliver on a regeneration of Ladywood that works for residents. The conclusion of the current partnership provides an opportunity to reconsider the approach and develop new proposals shaped by residents.
The council understands that many residents hold strong views about the future of the area and that this announcement may create uncertainty. The council is committed to keeping you informed as further information becomes available and to being open and transparent about the challenges and opportunities ahead.
Yours sincerely,
Paul Langford, Executive Director for Housing at Birmingham City Council
Stephen Kirwan, Divisional Managing Director at Berkeley Group
