Birmingham City Council has given the official green light to a transformative development set to become a major new gateway in the heart of the city's creative district.
A New Landmark for Digbeth
The ambitious Phoenix Yard scheme, proposed for a strategic plot of land adjacent to Digbeth High Street, received final approval from the council's planning committee. The development is poised to reshape an entire city block in an area celebrated as Birmingham's creative quarter, located near significant projects like the Smithfield development and the future HS2 station.
Councillors praised the overall vision for the project, with Coun Lee Marsham, the planning committee chair, describing it as "maybe the best scheme we've seen in quite a while."
What the Development Will Include
The approved plans grant full permission for the construction of two primary blocks. One will rise to six storeys, with another reaching four storeys, both designated for commercial and educational purposes.
Furthermore, the committee granted outline planning permission for a substantial residential and hospitality offering across two additional blocks. This includes:
- Up to 205 residential units
- Up to 576 student bedspaces
- Up to 228 co-living private bedrooms
- Up to 450 hotel rooms
A council officer's report clarified that the application "seeks to secure permission for any combination of these uses," providing flexibility in the final mix.
Debate Over the Co-Living Element
While the scheme was broadly welcomed, a notable debate emerged regarding the inclusion of co-living accommodation. Coun Gareth Moore expressed particular concern, labelling the concept as "basically glorified HMO living" and stating it was a use he could not support.
This view was countered by Coun Martin Brooks, who, while understanding the concerns, argued that the site's proximity to the city centre made it "quite a good location to have that kind of co-living concept." A council officer present at the meeting on 20th November 2025 supported this, stating the applicants had demonstrated a clear need for such accommodation.
After considering the possibility of deferring the decision, the planning committee ultimately voted to approve the application in its entirety.
Weighing the Benefits Against the Harms
A report published ahead of the decision highlighted the scheme's significant benefits, which were deemed to "carry greater weight" than any potential negatives. Key advantages include the provision of new homes and commercial floorspace, the potential for a new hotel, high-quality public realm, and the regeneration of brownfield land.
The development promises a "generous amount of public realm," featuring a central square for social interaction, an amenity lawn, rooftop terraces, and a resident's park.
Identified harms, such as the loss of some employment land and "less than substantial harm" to the Digbeth High Street conservation area, were attributed "only limited weight" by the planning officer. The site has also been previously identified for uses other than pure employment.
As part of the construction, all existing buildings on the application site will be demolished, with the exception of the Smithfield Garage, which will be partially bulldozed and partially refurbished.
