'We are delighted to have finally exchanged contracts,' developer says as deal signed to transform former Tower Ballroom site with 95 new homes

A total of 95 affordable homes, including some proposed for social rent and some in shared ownership, are to be built on the former Town Ballroom site.

Keon Homes will work with housing association, Midland Heart, to build the 95-strong mix of apartments (one and two bedroom properties) and family homes (two, three and four beds).

Under the plans, the site will be transformed into a fully accessible public walkway and square.

The development will also feature an enhanced landscaping area on the water’s edge that could improve the local nature reserve provision.

Construction work is expected to start in early 2027, with the development forming part of a wider project set to create 3,000 new homes across key Birmingham sites.

Oliver Thompson, senior land manager at housebuilding business Keon Homes, added: “We are delighted to have finally exchanged contracts on this historic and distinctive development site within Birmingham, adding to our growing portfolio of schemes across the Midlands.

“This milestone reflects the huge amount of work that has been undertaken by all parties, including months of collaboration between Birmingham City Council, Midland Heart and ourselves.

“The focus now is on submitting our planning application for the scheme, with the genuine hope of starting the development in early 2027, eventually delivering 95 high-quality homes alongside attractive landscaped areas and public open space to benefit the local community.”

Plans have also been lodged to refurbish the Grade II listed Reservoir Lodge into a new hub that will house communal areas and meeting spaces for local charities and community groups.

The development forms part of Midland Heart’s wider £295 million investment programme in Birmingham, which will deliver 1,200 new affordable homes by 2028.

Councillor Sharon Thompson, deputy leader and cabinet member for economy and skills at Birmingham City Council, said: “The Tower Ballroom redevelopment aims to create a vibrant new community, offering high quality energy efficient affordable homes and attractive outdoor spaces. It will give residents the opportunity to enjoy all the benefits of waterside living while remaining just a short distance from the city centre.

"Delivering more decent affordable homes for Birmingham families is a key priority for this council. Every project like this helps us move closer to our goal of building 2,000 homes a year that create thriving communities and transform people’s lives.

"We have consulted extensively with the public over many years to regenerate the area – and we have listened to the feedback and made changes to the development to deliver a site.”

The development is also important as it will be designed as a net zero neighbourhood.

Joe Reeves, deputy chief executive at Midland Heart, said: “We’re pleased to be working with Birmingham City Council and Keon Homes to bring forward plans for this landmark site. The former Tower Ballroom is an iconic location in the city’s landscape and transforming it into much-needed affordable homes marks an important step for Birmingham.

“This is also where we plan to deliver our next generation of sustainable homes. The scheme is being designed to meet a new national net zero standard coming into force in 2026 and, to our knowledge, will be among the first in the country to adopt this standard.”