The first tower is rising at Coventry’s £450m City Centre South regeneration scheme, a visible milestone for one of the most significant redevelopments in the West Midlands.
Developer The Hill Group has finished demolition and groundworks across the site, and the first building is now going up. It will contain 200 affordable homes: 145 for social rent and 55 for shared ownership. Hill is delivering them under an agreement with Legal & General, the first time the two have worked together on affordable housing.
The full scheme could eventually deliver up to 1,575 homes, along with shops, restaurants, cafés, commercial space and new public spaces. The first phase alone covers 991 homes, 8,000 square metres of commercial space and 17,000 square metres of public open space. The West Midlands Combined Authority has put more than £110m into the project.
West Midlands Mayor Richard Parker said: “Seeing the tower rise is a clear sign that progress is being made and this long-awaited development is becoming a reality.
“And with the skills hub recently opened on site, we are helping to train and offer job opportunities to local people too.”
The skills centre opened on the site recently. It aims to help local people gain the qualifications they need for careers in construction.
Andy Hill OBE, founder and group chief executive of The Hill Group, said: “Seeing the first tower emerge from the ground is an incredibly exciting moment.”
Paul Loader, director of delivery and aftercare at Legal & General, said: “This is an important milestone for us and a visible sign of the progress being made.”
Cllr Lynnette Kelly, Coventry City Council’s cabinet member for jobs, regeneration and climate change, said: “This is a landmark moment for Coventry. This development will bring lasting benefits for generations to come.”
A new heart for the city centre
Hill and Shearer Property drew up the housing-led scheme around Coventry’s historic indoor market. It will transform Bull Yard, Shelton Square, City Arcade and Hertford Street. The residential buildings, designed by Allies & Morrison, range from five to 19 storeys.
The market itself is getting its own upgrade. Last month Coventry City Council committed at least £1.25m to the outside of the Grade II listed building. Plans include new glazing to let in more light, wider doorways and better links between traders and the new public spaces. The first stage is funded by the WMCA, Pride in Place money and The Hill Group, and work could start in the new year, subject to planning approval. From 2028, City Centre South will also give traders a covered service yard and separate waste facilities.
At the time, Cllr Kelly said: “Coventry Market is at the heart of the new City Centre South public regeneration.”
A growing visitor economy
The scheme is taking shape as Coventry’s visitor economy reaches record levels. Figures published by Destination Coventry in September showed it was worth £1.009bn in 2025, the first time it has passed £1bn. That was up 9.3% on the previous year. The city welcomed 12.6 million visitors, and the sector supports 8,330 full-time jobs. Shopping accounted for 29% of visitor spending and food and drink for 33%.
Elsewhere in the city, the Coventry Building Society Arena this week announced plans for a further £15m of investment over the next three years, with annual visitor numbers now at 1.2 million.
Homes and jobs where they are needed
The scheme’s emphasis on social rent homes and local skills comes at a time of pressure on both housing and jobs in the region.
Government figures show housing starts in the West Midlands rose 17% to 12,050 in the year to June 2026, while completions fell 7% to 11,420. Across England, starts rose 15% to 136,330, while completions were unchanged at 143,770.
Nationally, the government has pledged to build 1.5 million homes in this Parliament. Fact-checking charity Full Fact estimates that around 437,900 net additional homes were delivered between July 2024 and September 2026, about 29% of the target, and it rates the pledge as “appears off track”.
Demand for affordable homes in the region remains high. When the Mayor launched his £40m Social Housing Accelerator Fund in October last year, the WMCA said 7,450 households across the West Midlands were living in temporary accommodation and 65,335 households were on social housing waiting lists.
The jobs market is also under strain. The latest Office for National Statistics figures show the West Midlands had an unemployment rate of 5.6% in May to July 2026. That is the second highest of any UK region and above the UK rate of 4.9%. The next regional figures are due on 20 October.
The first affordable homes at City Centre South are expected to be completed towards the end of 2027.
