Returning to the area in which he grew up, he's been appointed Priest-in-Charge of St Luke's in the city centre.
Whilst there is currently a congregation at the church, he will take a team from HTB and still work in partnership with the leadership there.
The 36 year old will stand down as Director of Worship at HTB but will continue to lead the group Worship Central, an international worship training and resource centre.
Speaking about the move he told Premier: "My wife and I have felt excited and called for a while now to lead a church where we could build a community, see people discipled, leaders being mobilised and released; and to try to invest in a city to see God's Kingdom come.
"It's a really exciting opportunity...it's kind of like going home."
The Church of England in Birmingham has recently bought a large warehouse just off Broad Street, the city's busiest street for nightlife.
It says the vision is that the parish will have two churches which Tim Hughes will oversee alongside a full time ordained colleague who is yet to be appointed.
The second church will look to invest in students and young adults and become what it calls 'a resource for the wider ministry of the Church of England in Birmingham'.
While a significant change for the worship leader, he's keen to point out he won't be putting his guitar down anytime soon. Inspired by a book called 'Chasing Francis' he says he wants to become an 'artist pastor' who leads in creative ways.
He said: "You lead out of who you are. I don't want to think the leader who works in a church is someone who does x,y,z. It's what are my gifts? What are my strengths?
"The big thing is leading with a team, and a community. I'm not gifted in everything so I need people who can help supplement that."
Tim, along with his wife Rachel and four children will make the move around Easter. The Church of England in Birmingham is asking local parishioners to hold them in their prayers and make them welcome as they settle into life in the city.
Bishop of Birmingham Rt Revd David Urquhart said: "I am delighted by the appointment of Tim Hughes as Priest-in-Charge at St Luke's in the City Centre.
"Tim and Rachel and their family have had an enormously fruitful time at HTB in London and we look forward to seeing all that God has in store for them here in Birmingham in the years to come."
Hear the full interview with Tim Hughes speaking to Premier's Justin Brierley: