Birmingham City Council and Berkeley St Joseph have mutually agreed to part ways and exit their development agreement for the £2.5bn Ladywood regeneration scheme.
The council and Berkeley St Joseph signed an agreement in spring 2025 to deliver the project, which would see up to 12,000 new homes built – at least 20% affordable.
On announcing the development agreement, the council hailed the project as the city’s “most significant housing development in a generation”.
In a joint statement, Birmingham City Council and Berkeley St Joseph, said: “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.”
