Homes England has announced a major £200 million agreement to deliver 1,000 build-to-rent (BTR) homes in Birmingham.

The Stone Yard development, located in Digbeth, spans a four-acre brownfield site and will consist of 605 high-quality homes across four buildings in its first phase. Completion is expected by 2028. Designed to promote modern urban living, the site will feature a variety of resident-focused amenities including co-working areas, 24/7 fitness centres, creative studio spaces, lounges, and private dining rooms. In addition, landscaped public areas, commercial units, and enhanced transport connections will form part of the scheme.

According to the government housing agency, “the site sits at the heart of the city’s creative quarter”, adjacent to the iconic Custard Factory, originally built by Bird’s Custard in 1906. It is also directly opposite the new Eastside Metro extension and HS2’s Curzon Street Station, both scheduled for completion by 2028.

Financing for the development comprises a mix of debt funding from NatWest and Homes England via the Home Building Fund, alongside investment from Aviva Capital Partners. To support regeneration, the West Midlands Combined Authority has provided brownfield grant funding. This has enabled the project to raise its affordable housing provision to 20%, offered at discounted market rent.

Moda, the project’s developer, will operate both the residential blocks and the associated public areas. A future phase will add three more buildings to the Stone Yard development, ultimately delivering a total of 995 homes. Marcus Railing, chief investment officer at Homes England, stated: “Stone Yard is a prime example of how the agency works collaboratively with both public and private partners to achieve our mission to build much-needed new communities that people can be proud to call home.” Michael Goode, NatWest’s director and BTR lead, added: “We worked with Aviva Capital Partners and Moda, alongside our funding partners at Homes England and the West Midlands Combined Authority, to deliver an innovative financing solution.”

This initiative supports the UK government's ambition to construct 1.5 million new homes during the current parliamentary term.

In a related move, the government announced plans last month to create a National Housing Bank, a Homes England subsidiary, backed by £16 billion in taxpayer funding. It aims to unlock over £53 billion in private sector investment over the next decade.

Homes England also reported a 12% year-on-year rise in housing delivery, with 36,872 new homes completed in the 12 months ending March 2025. 

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Source: Roger Baird, Mortgage Strategy