‘The region is serious about unlocking growth’ – Q&A with CBRE’s Sophie Borrowdale
The West Midlands Futures Fund was launched to the region’s private sector earlier this month, offering billions of pounds in funding to support major development schemes, economic growth, new homes and jobs.
In an exclusive Place Midlands Q&A, Sophie Borrowdale, director in CBRE Birmingham’s planning and development team, says the focus must now shift from the announcement itself to delivering tangible results for the region.
What does the announcement of the West Midlands Futures Fund mean for the region, and who stands to benefit?
“The opening of the West Midlands Futures Fund to the private sector sends a strong signal that the region is serious about unlocking growth. At a time when viability pressures continue to affect development delivery, the ability to combine public investment with private capital has the potential to accelerate housing, regeneration and commercial development, whilst strengthening the West Midlands’ attractiveness to investors seeking long-term growth opportunities.
“As securing funding and finance has become increasingly challenging in recent years, developers also face significant cost pressures. Research suggests that rising taxes, levies and regulatory requirements have added around £76,000 to the cost of building a typical new home since 2020 (or £98,000/unit for high-rise buildings), while construction costs have risen by 39% since 2021, further squeezing development viability.
“By combining public funding with private investment, the fund could help address some of these barriers, supporting infrastructure and site enabling costs that might otherwise prevent schemes from progressing. This will bolster investor confidence and could help bring forward significantly more housing, commercial development and regeneration projects, benefiting key stakeholders, developers, investors and local communities alike.”
How could the fund contribute to the future growth of the West Midlands?
“The fund could be a major catalyst for regeneration, helping unlock strategic sites where infrastructure requirements or viability constraints that have held development back. By supporting projects at an earlier stage, public investment can help create the conditions for private-sector capital to succeed.
The WM futures fund could unlock regeneration at major strategic sites, such as Birmingham’s Central Heart area. Credit: Place Midlands
“This is particularly important for brownfield regeneration, where bringing redundant or underused sites back into productive use can transform local areas. New initiatives such as the Central Heart prospectus in the city-centre and continued focus on Digbeth, demonstrate the potential of combining development with wider regeneration. The fund will essentially help create places where businesses can grow and people want to live from the ground up.
“Ultimately, the ambition should be to generate a wider economic uplift, attracting businesses, supporting employment and encouraging further investment across the region. This will contribute to stronger regional competitiveness, reinforcing the West Midlands’ position as one of the UK’s leading destinations for regeneration and business growth.”
What are the key implications for investors and developers?
“One of the biggest opportunities is the potential to improve investor confidence. Public-sector backing can help reduce some of the risks associated with large-scale development, particularly where significant infrastructure or site preparation costs are involved. This generates the opportunity for institutional capital to enter projects earlier, meaning public funding can support site enabling works and infrastructure delivery.
“The fund could also create a clearer pipeline of investable opportunities across residential, commercial and mixed-use development, including offices, hotels and employment schemes. However, much will depend on how projects are assessed and prioritised through the funding process.
“Developers will need to demonstrate that their proposals are project ready, credible and capable of delivering meaningful economic benefits. The challenge will be ensuring funding reaches the schemes where it can make the greatest difference, helping turn ambitious proposals into deliverable projects.”
How can the fund balance commercial investment with positive outcomes for local communities?
“Commercial investment and community benefits should always go hand in hand. Successful regeneration needs to create more than new buildings – it should generate employment, improve local environments and support communities over the long term. The allocation of more than £400 million from the initial £3.8 billion fund towards affordable and social housing is an important step.
“Ensuring that investment supports a diverse range of housing needs will be vital, particularly as the region seeks to accommodate a growing population. The wider priority should be to make sure development contributes to thriving places, with opportunities for local people and businesses as well as attractive prospects for investors.”
What will be key to ensuring the fund delivers lasting economic growth?
“The fund’s success will ultimately depend on how effectively capital is deployed and whether it helps projects overcome the barriers that currently prevent development from moving forward. Clear priorities, credible delivery plans and close collaboration between the public and private sectors will be essential.
“If the fund can unlock stalled sites, accelerate housing and infrastructure delivery, and encourage businesses to invest and expand, it could have a lasting impact on the West Midlands. The opportunity is significant, but the focus must now shift from the announcement itself to delivering tangible results for the region.”
