Short answer. We arrange development finance for Birmingham schemes from £200,000. The average published senior development rate in our lender data was around 7.5% a year in October 2026. Birmingham's average house price is £235,000, up 1.5% on a year earlier (ONS, August 2026, provisional).
Birmingham in numbers
- Price. ONS puts the average Birmingham home at £235,000 in August 2026. The West Midlands average is £251,000, up 1.2%. One provisional month moves around, so ONS advises looking at a year or longer.
- Rent. The average private rent in Birmingham was £1,106 a month in September 2026, up 3.3% on a year. The West Midlands average was £983.
- What that means for a developer. Rents in the city sit above the regional average, while prices sit below it. A lender will want your sale or rental evidence to fit the street, not the headline.
Sources: ONS, Housing prices in Birmingham and Private rents in Birmingham, August and September 2026 data.
Where Birmingham is building
Digbeth. In May 2025 the council published a Digbeth Prospectus. The council describes 11 development sites on 35 plots, with over 6,000 homes and over 300,000 square metres of commercial floorspace.
What that means for finance. A prospectus is an invitation, not a consent. Each site still needs its own planning position, cost plan and exit before a lender will commit.
Small HMO conversions. Birmingham's Article 4 direction covers the whole city, not single wards. Since 8 June 2020, converting a home to a small HMO needs planning permission. It replaced the earlier direction covering Selly Oak, Harborne and Edgbaston. Check the council's current position before you buy.
What we arrange for Birmingham schemes
| Scheme | How finance can work | What matters most |
|---|---|---|
| Ground-up housing on a consented site | Senior development debt, drawn against the build | Planning in place, cost plan, contractor, exit |
| Conversion of offices or shops to flats | Senior debt, or a bridge to buy then development finance for the works | Planning route, structure, end values |
| Build-to-rent block | Senior debt, with mezzanine or forward funding considered case by case | Operator or letting plan, rent evidence |
| Mixed-use scheme in the centre | Senior debt, with mezzanine considered case by case | Planning mix, commercial letting, exit |
| Small HMO or flats conversion | Senior debt, or a bridge then development finance for the works | Article 4 permission, layout, exit |
We will say which of these fits yours.
Before you approach a lender
- Planning: consent in hand, or a clear route and date.
- Cost: a quantity surveyor's cost plan and a named contractor.
- Exit: sale prices or rents backed by local evidence.
- Site: conservation, access and the Article 4 position for anything HMO-related.
- Your track record: what you have built, and with whom.
Birmingham development finance questions
What development finance is available in Birmingham?
Senior development debt for housing, conversions and build-to-rent. Mezzanine and forward funding are considered case by case. Our range starts at £200,000.
Does the city-wide Article 4 direction affect development finance?
It affects planning, not the loan type. A scheme that converts a home to a small HMO needs permission first, and a lender will want to see it.
Can you fund a site in Digbeth?
On a case-by-case basis. The prospectus lists sites, but each one depends on its own planning, cost and exit.
How do I start?
Tell us the site, the planning position, the build cost and how you will repay. It is a confidential, no-obligation chat. See also development finance, mezzanine finance and forward funding.
Across the region
Tell us about your Birmingham scheme
We arrange unregulated business and investment loans, for business or investment purposes only - never secured on a home you or your family live in. A loan on such a home is regulated lending and belongs with an FCA-authorised mortgage adviser. Funding Developers Limited is not authorised or regulated by the Financial Conduct Authority.