Dudley Council is to spend more than £6m on 24 new homes in Coseley to ease pressure on its waiting lists.
The council’s cabinet member for development and regulation, Cllr Daniel Bevan, has approved the purchase using cash from the Right to Buy scheme.
The authority has £10m to spend in the 2026/27 financial year, which is part of the ring-fenced Housing Revenue Account (HRA).
Notes accompanying the decision to buy part of the Coseley New Village development, between Bean Road and Sedgley Road West, said: “There remains an ongoing need to acquire new homes for let as the council continues to disinvest and dispose of existing dwellings which are no longer fit for purpose.
“Consequently, Right to Buy receipts will be used to purchase new build homes for occupation by our tenants within a shorter timeframe than that achieved by re-commencing new build schemes now and completing new homes in-house.”
The report on the decision says the market valuation of the homes in £7.8m however the authority negotiated a 15 percent discount with developer Persimmon Homes and will pay £6.6m.
Dudley Council expects to recoup the cost of buying the homes plus £2m extra in rent income over the next 30 years as owners of the properties and housing officers say they may also be able to secure 30 percent of the purchase price from a Housing England grant.
Dudley Council has around 5,000 people on its waiting list for housing and receives about 150 applications each week.
In 2023 the authority took a decision to stop building its own houses however there seems to be a change of policy on the way.
The report on the Coseley New Village purchase said: “The council now has an appetite and capacity to build again, and a number of stalled sites are under review at present.
“It is anticipated several sites will be submitted for planning this financial year, and if planning is approved the earliest likely completion of new homes ready for let shall be winter 2027.”
By Martyn Smith | Local Democracy Reporting Service
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