The former City Hospital site in Birmingham is set to begin a new chapter after Homes England confirmed it has entered into a building lease agreement with housebuilder Vistry to deliver a

major residential-led redevelopment.

Under the deal, 750 new homes and a retail convenience store will be built on the historic site, marking one of the city’s most significant regeneration projects in recent years. The scheme will see the majority of the old hospital buildings demolished to make way for 698 new-build homes, alongside the sensitive conversion of the former infirmary into 52 one- and two-bedroom apartments.

Vistry already holds planning permission for the new-build element of the development and has recently secured approval for the conversion of the listed infirmary building. Once complete, more than a third of the homes — 35% — will be classed as affordable housing, delivered across a range of tenures to meet local demand.

The project follows extensive collaboration between Homes England, Sandwell and West Birmingham NHS Trust, and Birmingham City Council. The complex process of vacating the hospital site has now been completed, with patients and staff having transferred to the new Midland Metropolitan Hospital, which opened its doors in October 2024.

Early preparatory works are already under way. Asbestos removal began in December 2025 to allow the site to be safely cleared ahead of demolition. Subject to progress, construction is expected to start in the second half of 2026, with the first homes anticipated to be completed in early 2027.

The redevelopment is expected to play a key role in boosting housing supply in Birmingham while giving a long-standing landmark a new purpose for future generations.

Mike Goulding, Director of Development at Homes England said: “This development marks a new chapter for a historic site, bringing much-needed, high-quality homes – with over a third as affordable housing – to this part of Birmingham. We’ve worked closely with the NHS Trust, Birmingham City Council, and the local community to enable a smooth and safe transition from a working hospital to a site ready for demolition and construction.

We’re grateful to all our partners for their collaboration and we look forward to working with Vistry to deliver the first homes in this well-connected new community next year”.

Cllr Nicky Brennan, Cabinet Member for Housing and Homelessness at Birmingham City Council, said: “This project is a fantastic example of what can be achieved when partners work together with a shared vision. By collaborating with Homes England, Vistry, and the NHS Trust, we are transforming the former City Hospital site into a vibrant community with high-quality homes, including 35% affordable housing.

This development reflects our collective commitment to tackling housing challenges and marks a significant step forward in delivering much-needed affordable homes for Birmingham”.

Michael Moore, Managing Director of Vistry North West Midlands, said: “This major regeneration scheme will transform a challenging brownfield site into 750 high-quality, mixed tenure homes and new commercial uses. We share the government’s ambition to deliver new homes at scale and pace, and by working closely with Homes England and Birmingham City Council we can create a vibrant, sustainable new community that will not only meet the housing needs of the area but will bring both regeneration and valuable investment into the city”.

Diane Wake Group Chief Executive for Sandwell and West Birmingham NHS Trust and Dudley Group NHS Foundation Trust commented: “This is an exciting time in the wider regeneration of the West Birmingham and Smethwick Regeneration Corridor of which our development of the Midland Met hospital was a key component.

Obviously, it is a significant moment in our journey to finally say goodbye to City Hospital which has served the local population for over 130 years, however it has been a goodbye we have planned for many years, and we look forward to the site being developed to continue the tradition of serving its local people. Homes England has exciting plans for the site and we look forward to watching the site return to a vibrant hub in the coming years”.