Smithgate takes key steps forward as funding secured and work begins
05.02.26 3 min read
A vibrant new quarter at the heart of Wolverhampton city centre has taken crucial steps forward after securing significant new funding, appointing a contractor and construction works starting on site.
Smithgate will deliver up to 1,000 new homes alongside a mix of public spaces, shops and amenities, creating a place where people can live, work, and enjoy life.
ECF – a partnership between Homes England, L&G and Muse – is working with City of Wolverhampton Council to regenerate 12 acres of land linking School Street and Darlington Street to the area around Market Square.
The regeneration is being brought forward through close collaboration with the city council, local stakeholders and the community, with a shared focus on delivering inclusive and well-connected place at the heart of the city.
Sir Michael Lyons, Chairman at ECF, said:
“These milestones mark an important step forward for Smithgate as we work together to transform the area into a new mixed-use district, bringing forward new homes, high-quality public spaces and places for people to connect in a vibrant city centre.
“We are confident This will unlock economic growth, create jobs and act as a catalyst for further investment in Wolverhampton city centre.”
ECF has appointed Caddick Construction as the main contractor for this phase, with construction now underway on the first phase of Smithgate, known as Bicycle Works, which will deliver 331 quality new homes and create highly skilled jobs for Wolverhampton.
Smithgate will introduce safe open spaces, shops, and cafes for people to meet up, relax, spend time and enjoy, strengthening community ties and supporting local businesses.
Basit Ali, Development Director at ECF, said:
“Working with Caddick and having funding in place means we can accelerate delivery, bringing high-quality homes, green spaces, and vibrant places that not only make Wolverhampton more liveable but also unlock significant economic growth, creating jobs and having a long-term positive impact for the city and its people.”
The regeneration has attracted significant investment for this first phase of delivery, with ECF securing £18 million from the West Midlands Combined Authority and £65 million in private funding, demonstrating a shared commitment to the future of Wolverhampton.
This backing from regional leaders and national investors displays a clear confidence in the city, reflecting ECF’s ambitions for Smithgate and its place in the region, whilst ensuring an exciting future for future and existing residents.
Richard Parker, Mayor of the West Midlands, said:
“The scheme will be a springboard for new growth and provide hundreds of badly needed new homes. I’m backing regeneration schemes like this one in town and city centres across our region as part of my Growth Plan to fire up our economy, raise living standards and provide the homes people need and deserve.”
Over the next decade, Smithgate will unlock significant economic benefits for Wolverhampton, creating jobs, skills opportunities, and boosting city centre footfall to support and attract new businesses.
Once all phases are complete, the development will also provide 20,000 square feet of retail, leisure, and commercial space, creating a dynamic destination for residents, visitors, and businesses alike.
Councillor Chris Burden, City of Wolverhampton Council Cabinet Member for City Development, Jobs and Skills, said:
“Smithgate is Wolverhampton’s largest regeneration scheme and will deliver hundreds of new homes for local people, create jobs and boost businesses – securing brighter futures for all.
“The first phase comes on the back of a catalogue of investment schemes set to boost the city centre economy, including the new £61 million City Learning Quarter, which recently opened to college students, and the ongoing £19million city centre improvement works programme.”
Wolverhampton is perfectly positioned with excellent transport connections, offering easy access to Birmingham and the wider region, making it an attractive destination for both residents and visitors.
These milestones mark the next stage in a long-term commitment to transforming the heart of the city, representing a long-term commitment to Wolverhampton in creating a thriving destination for people today and for generations to come.