Demolition starts as massive City Centre South regeneration scheme gets underway in Coventry

Mayor Richard Parker was on hand as demolition work started on Coventry’s landmark City Centre South project, the largest and most ambitious regeneration scheme the city has seen in decades.

The West Midlands Combined Authority is making a £110m investment into the £450 million project, which is being delivered by award-winning housebuilder The Hill Group in partnership with Shearer Property Group (SPG).

The scheme is set to transform outdated and underused post-war buildings into a modern, sustainable and thriving city quarter. The first phase of works includes the demolition of the former Argos building in City Arcade and the Barracks multi-storey car park, paving the way for the start of construction later this year.

The Mayor joined other senior figures including Cllr Jim O’Boyle, Coventry’s cabinet member for jobs, regeneration and climate change and representatives from Homes England and The Hill Group to celebrate the beginning of this transformational project.

Once complete, City Centre South will provide up to 1,575 new homes, a mix of studio to three-bedroom apartments designed to suit a diverse community of residents. The first phase will deliver 991 of these homes, alongside 8,000 square metres of new commercial space for shops, hospitality and businesses, and 17,000 square metres of public open space.

Inspired by Coventry’s architectural heritage and designed by leading architects Allies and Morrison, the new development will introduce contemporary design and pedestrian-friendly spaces, conveniently located just a five-minute walk from Coventry train station. The project forms a key element of Coventry’s wider plans for regeneration, helping to create a vibrant, inclusive and future-ready city centre.

Importantly, the project places a strong emphasis on providing affordable housing for local people. Phase one will include 200 affordable homes funded through the Affordable Homes Programme 2021 – 26, of which 145 will be for social rent and 55 will be available through Shared Ownership. Most of these homes will be located in the first two buildings to be constructed, ensuring early delivery of much-needed affordable homes in the city centre.

Richard Parker, Mayor of the West Midlands, said: “City Centre South is a game-changer for Coventry which is why we are investing more than £100m into the scheme. This regeneration project is exactly the kind of bold, community-first development we need across our region. It will bring new homes, new opportunities, and a renewed pride to the city centre.” 

Andy Hill, Group Chief Executive of The Hill Group, said: “We are delighted that demolition work has begun at City Centre South as we progress our commitment to the delivery of this transformative city centre development. This is a unique opportunity to create a new heart for Coventry that combines high-quality homes, public spaces and long-term value for the local community.”

Councillor Jim O’Boyle, cabinet member for jobs, regeneration and climate change at Coventry City Council, commented: “This is a big moment for Coventry. City Centre South will completely transform this part of the city and attract people to live, work, and spend their time here. This means they will spend their money and their leisure time here too – which is good for the city centre. It’s a reminder too that people want to enjoy city centres in new ways which is why creating places for people to live, including affordable and social housing, is so important.

“We’ve worked hard to bring this vision to life, and it’s fantastic to see real progress on the ground with demolition now under way. This development will deliver not only homes but also jobs, green spaces and a much more attractive city centre.”

Jo Nugent, Director- Midlands at Home England said: “The Affordable Homes Programme 2021-26 has been instrumental in accelerating delivery across our shared pipeline, developed through our Strategic Partnership with Registered Provider, Legal & General Affordable Homes.”

“City Centre South is a prime example of how we work collaboratively with partners like West Midlands Combined Authority, Coventry City Council and private investors. This collaborative approach is exactly how government envisions Homes England working with mayoral strategic authorities: aligning investment, unlocking opportunity, and delivering at scale through its Strategic Place Partnerships.”

The demolition is expected to take nine months before construction begins this summer 2025, with the first homes expected to be completed in late 2027.

For further information visit City Centre South