According to Deloitte’s latest Birmingham Crane Survey, the number of new developments starting on site in the previous year was the lowest since 2020.

Of the 11 schemes that got off the ground, more than half are residential, including new homes and student accommodation. New office development is coming forward, but the majority of the pipeline is refurbished or repurposed space.

There are a number of reasons for the slow-down in construction and development activity in the city. Global uncertainty and the economic downturn have undoubtedly knocked confidence – not just in Birmingham but in other regional markets – and forced up the cost of borrowing.

Construction costs have also risen, whilst new regulation has stymied development, particularly in the residential sector where the Building Safety Act has resulted in additional cost and delays.

With traditional funding routes challenged, many schemes are reliant upon gap funding from the public sector to make them viable.

Both the West Midlands Combined Authority (WMCA) and Homes England have funding pots available. To date, these have been for residential development, often on brownfield land.

In the Autumn Budget, however, the Chancellor announced a new £500m fund specifically to get commercial development projects off the drawing board.

The Mayoral Revolving Growth Fund will provide six regional authorities – including the West Midlands – with government-backed borrowing for commercial developments, including Grade A office space, laboratory space and innovation hubs.

In making the cash available, the Treasury acknowledged that “commercially viable development in many major cities is being held back by weak investor confidence, leading to inflated perceptions of risk and high financing costs.”

The ability to access gap funding – albeit it on a loan, rather than a grant, basis – will be a gamechanger for many commercial developments. Not only will it make schemes feasible, it will also give lenders greater confidence, helping to leverage private finance.

The desperate need for new homes to address the housing crisis has meant residential developers have enjoyed better patronage from the public purse. Commercial developers are just as important to the economic ecosystem, providing business space to create jobs and improve productivity and growth. Whilst £500m spread across six regions means the cash will have to be eked out, it’s an encouraging start.

Let’s hope we see more cranes across the skyline in 2026 – with commercial developers’ branding attached to their jibs.