West Midlands Leads The Way in Housebuilding Within Construction Sector

Published by Glenigan on 20th November 2019 -


Housebuilding boosts West Midlands construction sector, defying the Brexit gloom.

The number of new homes starting construction only rose in three of the UK’s dozen regions in the third quarter of this year. The West Midlands led the way with a 52% surge as work began on 4,760 units according to the National House-Building Council.

The sector was boosted by the 1,200 homes that form part of the athletes’ village for the 2022 Commonwealth Games (Glenigan Project ID: 18129238). Even without this project, housing starts in the region would have risen nearly 14% as more and more new homes are being built.

Demand is strong as house prices rose 2.1% in the 12 months to Q3 2019 according to the Nationwide, making the West Midlands the fourth best performing housing market in the UK.

Housing focus

A total of 14,500 new homes were built in the West Midlands in 2018. This figure is up 21% on 2017 and completions are targeted to reach 16,500 over the next decade.

Glenigan’s research has identified many new private residential schemes in the pipeline such as the second phase of the New Garden Square development in Birmingham. Set to feature 392 apartments, this stage of the project is due to start next spring (Glenigan Project ID: 19395407).

Work on Bloor Homes’ West Shottery development including 800 new homes is also likely to start next spring (Project ID: 09358430), while a redevelopment of Edgbaston cricket stadium in Birmingham including 374 flats is likely to begin once next summer’s cricket season is over (Glenigan Project ID:  17289537)

Regeneration opportunities

Residential work is also at the forefront of a swathe of regeneration projects in the West Midlands.

Earlier this year, the West Midlands Combined Authority (WMCA) unveiled a £10 billion programme of regeneration work comprised of 24 major projects. Many featured large elements of residential development, such as the UK Central Hub, which will include 4,000 homes (Glenigan Project ID: 12320967).

WMCA chief executive Deborah Cadman said: “The investor-friendly WMCA is focused on providing our region with strategic leadership and the local knowledge needed to succeed.

“Supported by the UK Government’s ambitious Industrial Strategy, we are building tomorrow’s homes, creating vibrant and thriving mixed-use places, investing in world-class infrastructure, and transforming the West Midlands into the UK’s growth capital.”

Other projects in the WMCA programme include the City Centre South scheme in Coventry (Glenigan Project ID: 08042601). Outline planning permission has been granted and Glenigan’s research shows demolition started on November 2019. The main construction is due to start in Autumn 2020.

In the pipeline

The West Midlands is predicted to weather any post-Brexit downturn according to Glenigan’s latest industry forecasts. Project starts were expected to rise by 12% this year.

A prediction for next year will be made in Glenigan’s latest construction industry forecasts, which will be published in December.

Ian Bellamy

Glenigan is the trusted provider of construction project sales leads, industry data, analysis, forecasting and company intelligence. Glenigan combines comprehensive data gathering and exhaustive research with detailed statistical modeling and expert analysis .

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