Homes England has signed a £200m deal to build 1,000 built-to-rent homes in Birmingham.  

The Stone Yard project in Digbeth covers a four-acre brownfield site and will comprise 605 high-quality homes across four blocks, expected to complete in 2028. 

The site will house a range of public spaces for residents, including co-working spaces, 24/7 gyms and studio spaces, lounges and private dining rooms. 

It will also include commercial units, landscaped public areas and transport links. 

The government development agency says, “the site sits at the heart of the city’s creative quarter”, next to the Custard Factory workspace, pictured, (built by Bird’s Custard in 1906) and opposite the new Eastside Metro extension and the HS2 Curzon Street Station, set to be completed in 2028.

Funding for the project includes debt financing from NatWest and Homes England through the Home Building Fund. Aviva Capital Partners also provides funding.   

The West Midlands Combined Authority has provided brownfield grant funding, allowing the project to lift its affordable housing provision to 20%, which will be offered at a discounted market rent. 

The buildings and the public spaces will be operated by developer Moda.   

The government development agency says a later development phase will build a further three blocks, bringing the total number of homes at Stone Yard to 995. 

Homes England chief investment officer Marcus Railing says: “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.” 

NatWest director and BTR lead Michael Goode adds that the bank 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”. 

The project is part of the government’s drive to build 1.5 million homes over this Parliament. 

Last month, the government said it would establish a National Housing Bank, which will be a subsidiary of Homes England, backed with £16bn of taxpayer cash. It will aim to unlock over £53bn of private investment over the next decade.   

Also, last month, housing programmes delivered by Homes England resulted in 36,872 new homes completed in the 12 months to the end of March, a 12% rise compared to the same period a year ago, the agency reported.