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This year’s report will provide a comprehensive analysis of the city’s economy amid the wider geopolitical landscape, and actionable measures that businesses and stakeholders from across the city-region can take to drive economic growth.
Read the full Birmingham Economic Review 2025.
The UK is in the middle of a housing crisis with an overall shortage of housing, especially affordable homes. An estimated 8.5 million people in England alone are currently unable to access suitable housing.1 Challenges include a persistent shortage of affordable housing, delayed homeownership difficulties accessing the housing ladder and delayed home ownership. Pressures have been compounded by a decline in the proportion of affordable or social rent housing longer waiting lists for social housing, a rise in rough sleeping, and growing numbers of families and renters living in overcrowded, insecure, or poor-quality accommodation.2
Among those affected are two million children in England growing up in homes that are overcrowded, unaffordable, or unsuitable. The housing crisis disproportionately impacts certain population sub-groups, with Black, Asian and Minority Ethnic communities and people with disabilities facing higher risks of homelessness and poor-quality or overcrowded housing.3
Greater Birmingham – and the wider West Midlands region – are certainly not immune to the challenges of the housing crisis. In 2024, 116,565 households across the West Midlands region were on local authority housing registers (waiting lists), marking an 11.5% increase compared to 2022.4 In terms of affordability, whilst there are variations across the region, the West Midlands had the second highest mean proportion of household income spent on housing in 2023-24 at 26.8%, behind only London. This represents a slight improvement compared to 2019-20 when the figure stood at 27.8%.5
In response, the government has committed to constructing 1.5 million new homes by the end of this Parliament – meaning around 370,000 need to be built in England each year.6 One of the government’s main housing policies is the Affordable Homes Programme (AHP). AHP provides grant funding to housing associations and local authorities to build new affordable homes for rent or sale across England. The 2021 to 2026 programme is worth £2.3 billion per year. In addition, the government launched further top-ups of £500 million and £350 million.7 At the 2025 Spending Review, the government committed to a new 10-year £39 billion Social and Affordable Homes Programme from 2026-27 to 2035-36.8 The programme should be welcomed as it aims to deliver the biggest increase in social and affordable housebuilding in a generation.
Whilst the 1.5 million homes target is undoubtedly challenging, there are grounds for optimism in the West Midlands. Devolution offers opportunities to develop greater co-ordination between local authorities to address housing challenges including homelessness. This is particularly important given the pressures on local authority budgets. The “Trailblazer” Deeper Devolution Deal signed between the West Midlands Combined Authority (WMCA) and HM Government in 2023, agreed that the WMCA would lead on setting the strategic direction of the Affordable Homes Programme, shaping priorities for investment valued at a minimum of £200 million for the region – making it the first region outside of London to gain such powers. The deal set a clear ambition for the WMCA, local partners, and Homes England to collaborate in delivering up to £400 million in total investment. 9
The West Midlands Integrated settlement was agreed in 2025. A new funding deal between the WMCA and the government combines multiple funding streams into a single pot, for housing the settlement gives the WMCA greater control over the Brownfield Housing Fund (£26.11 million allocation in 2025 financial year) and the Brownfield Land Release Fund (£2.58 million).10
In October 2025, West Midlands Mayor Richard Parker announced that WMCA had secured agreement from national government to use £40 million of existing housing funds to deliver 1,000 new social homes across the region to reduce waiting lists and improve access to affordable housing. This announcement is particularly important as the WMCA housing remit was previously limited to preparing brownfield sites – cleaning and unlocking land to make it viable for developers.11 As part of his ‘Homes for Everyone’ priority, the Mayor has outlined a goal for the region to construct 2,000 social homes annually by 2028.
Local authorities in the West Midlands also been allocated £4.4 million to help prevent homelessness and support families in winter 2025.12 Birmingham will receive £1.4 million in government funding. This will support the Indoors Campaign, which helps long-term rough sleepers access safe accommodation, and provide essential support – such as food, laundry, and school travel – for children and families living in temporary housing.
Overall, building new homes and providing support to individuals at risk of homelessness is only one part of the solution to developing sustainable communities and sense of pride in place. Ultimately, residents of Greater Birmingham and Solihull must have sufficient income to afford to rent or purchase the new homes being constructed. This highlights the need for local, regional, and national policymakers, business leaders, Further Education, Higher Education and community stakeholders to develop a joined-up strategy that connects housing with skills and employment. Leveraging the opportunities offered by the government’s emphasis on increased devolution and developing a co-ordinated, strategic response at the sub-regional level will be crucial.
This blog was written by Abigail Taylor, Research Fellow, City-REDI, University of Birmingham.
Disclaimer:
The views expressed in this analysis post are those of the authors and not necessarily those of City-REDI or the University of Birmingham.