Thriving towns in a three-city region

COMMENT Much of the discourse around towns and their role in the development of our regions refers to those on the outskirts. But across the country there are towns which, despite having their own cultural (and often political) identity, are to all intents and purposes, part of the economic geography of the cities around them. These are places where the lines are blurred; nobody asks for your passport when you cross the river from Manchester to Salford, but who could argue that Salford’s cause hasn’t been furthered by Manchester, and vice versa? This is particularly prevalent in the West Midlands. A three-city region stretching from Wolverhampton to Coventry via Birmingham, it is a tightly woven tapestry of separate but interdependent cities, towns and boroughs that come together to form one continuous urban geography. All of those places contribute to the region’s economy, its housing delivery, its industrial base – and the continuous nature of that collective economic offer creates scale. The West Midlands’ economy is worth £117bn, roughly equivalent to Hungary; its 4.7m population is the same as New Zealand. As a result, as global capital floods to our cities, the market is seeing the vitality and viability in our connected towns. A changing landscape The whole narrative around the UK’s regions has changed as prominent metro mayors demonstrate regional leadership through increased funding and powers. Nowhere is that starker than in the West Midlands. As well as containing the UK’s second-largest city, the region has one of the youngest populations in Europe, has been the top destination for foreign direct investment outside London and the South East for five consecutive years, and is the UK’s fastest-growing tech cluster. Of course, much of that activity is focused around our cities, but that demand is trickling outwards. For example, Birmingham is the youngest major city in Europe and the UK’s number one destination for people moving from London. Because of that growth, it will need 4,000 homes a year between now and 2027 – demand that can be fulfilled in Sandwell, a 15-minute direct metro commute away. This has led to developments such as Grove Lane, a housing scheme next to the new Midland Metropolitan University Hospital, less than five miles from central Birmingham. It will deliver more than 800 new homes, a new school and green space. Transport is key Investment in transport infrastructure has been vital to broadening viability, too. Already, 90% of the UK is accessible from the West Midlands within four hours, but in recent years we’ve seen local travel times drastically reduced by a new tram network, rapid bus services and new stations open or set to open across the region. This has made possible other schemes like Willenhall Garden City, a £210m masterplan plan that will see more than 500 new homes delivered in Walsall, enabled by a new rail station with direct links to Birmingham and Wolverhampton. If that weren’t enough to stimulate the market, there is money available. The West Midlands has been one of the biggest recipients of the UK government’s levelling-up funding – to the tune of around £600m – in addition to securing more than £1bn in devolved housing and land funds since 2018. Bolstered by the West Midlands Combined Authority’s latest devolution deal and Plan for Growth, this has put money in the hands of an ambitious public sector; local authorities with track records of delivery, creating transformative opportunities that simply didn’t exist before. Friar Park Urban Village in Sandwell is one of the largest brownfield development sites in the region and has been directly enabled by devolved funding from the WMCA. Dudley’s Health Innovation Centre will see Worcester University create a new healthcare campus thanks to £25m from the government’s Towns Fund. Drawing in investment Far from taking place in isolation, these developments are encouraging serious investors to make serious commitments outside of the city. Earlier this year, build-to-rent specialist, Gatehouse IM, acquired 174 West Midlands homes, including a site in Dudley, while Lovell Homes is delivering 234 new homes in Oldbury, just over the local authority border from Birmingham and with a direct rail link to both London and Manchester. The landscape of investment is being shaped by this combination of organic growth, investment and public intervention. For all that cities have been the focus of much of the real estate investment market up to now, the transformation of our towns – underpinned by warm residential markets and infrastructure developments – has many city investors looking further afield. There are ambitious town centre masterplans and significant residential opportunities across Dudley, Sandwell, Walsall and Solihull, and collaborative local authorities ready to work with investors who share their vision for sustainable and inclusive regeneration. In short, if investors haven’t looked at these opportunities yet, it’s high time they did. Andrew Dunbar is head of capital investment at West Midlands Growth Company