Plans for new tower in Birmingham spark concerns that city could be left with ‘piles of unsuitable accommodation’

Plans for a scheme which will provide 506 student bedspaces in the heart of the city were approved at a council planning meeting earlier today.

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The development includes proposals for a 21-storey tower, as well as an eight-storey shoulder building, amenity space, communal roof gardens and ‘public realm’ fronting Suffolk Street.

A council officer’s report, published ahead of a meeting this week, listed several benefits the plans could provide, such as contributing to housing need and the re-use of a brownfield site.

Today’s decision follows planning permission being granted at the same site for residential apartments, rather than student accommodation, back in 2024 – but this has since been “demonstrated to be unviable” according to a council report.

The application’s agent said the permission from two years ago was “granted at a time when the regulatory and economic landscape for high‑rise schemes was materially different”.

“Since approval, the introduction of the Building Safety Act and associated reforms to fire safety regulations now necessitate a fundamental redesign of the consented scheme,” they suggested.

“Alongside this, build‑cost inflation in Birmingham has risen at a rate outpacing residential values, significantly eroding viability.

“Collectively, these factors have resulted in an absence of developer interest in delivering the approved scheme, with the challenges expected to persist for the foreseeable future.”

Speaking at today’s meeting, Birmingham councillor Martin Brooks described the statement as “really worrying” if inflation was making it difficult for residential schemes to be built.

“That has enormous consequences as a city,” he said.

“What we’re saying there is you can get funding for niche projects like student accommodation but general residential accommodation is going to be really difficult because of that inflation.

“It suggests to me that all we can get in the city centre is probably these kinds of [student accommodation] schemes.”

He added: “I don’t think the case is made that there is substantial demand in the city centre for purpose-built student accommodation (PBSA).”

Coun Brooks went on to say he was worried that PBSA is a “bubble that’s going to burst sooner or later”, adding: “It’s unsustainable and entirely subject to a lot of international pressures.

“I think we need to be really careful about that – we could end up with piles of accommodation that isn’t particularly suitable for the needs of this city.”

Lee Marsham, chair of the planning committee, said addressing such concerns would involve a wider strategy and that planning applications are judged on their individual merits.

A council officer added that recent research showed that there is a need for student accommodation in the city centre and argued there is currently a “shortfall”.

“It would be a shame if this site sat empty really,” she continued. “We are expected to make decisions on the evidence that is before us.”

A report, published ahead of the meeting, said: “The proposed development would see the delivery of a high-quality student housing, in a sustainable location on brownfield land.

“The proposed residential apartments would make a meaningful contribution towards Birmingham’s housing provision and the regeneration aspirations for this part of the city centre.

“It would create a distinctive place and in accordance with local and national policies. The scheme would also provide economic, social and environmental benefits.”

The plans for 120 Suffolk Street, Queensway were ultimately approved by Birmingham Council’s planning committee earlier today.

The 506 student bedspaces will include 441 studios and 65 cluster apartments.