The landmark agreement signed by L&G chief executive Sir Nigel Wilson and Mayor, Andy Street, is the first with a combined authority,  and sets out a commitment to a seven-year programme of investment.

Alongside support for new commercial developments, the agreement envisages a major contribution by L&G into climate-friendly projects and build-to-sell and build-to-rent housing.

The first scheme for the partnership will be The Junction, a brownfield site in Oldbury which has lain empty for over 20 years.

The site will be brought back into economic use delivering 234 energy-efficient homes with nearly half  affordable housing under the WMCA’s local definition.

The agreement will also support the region’s target to deliver 215,000 new homes by 2031, as set out in its ground-breaking Housing Deal with Government in 2018, and the WMCA’s drive for wider inclusive growth.

Street said: “This major investment will help regenerate long-neglected areas across the West Midlands, provide affordable homes in the communities where the need is most felt, and supercharge economic growth in the years ahead.

“The scale of the ambition L&G is showing is evident in both the huge sums involved and the breadth of projects envisioned. ”

Sir Nigel added: “We have been investing across the UK in partnership with cities and universities for a decade.  It’s part of our ‘Inclusive Capitalism’ approach and has delivered terrific economic and social results. With Andy and his colleagues as ambitious partners at WMCA, we can take this to a new level.

“The West Midlands’ economic plan, resources and skills make it an attractive destination for trade and investment from across the world; our role in this is to put UK funds including pension savings to work here so UK savers benefit from UK prosperity.”