Dudley Council is preparing to invest £2.5 million in new housing after striking a deal to buy ten brand-new homes in Coseley from one of the UK’s largest housebuilders.
The authority confirmed that it will purchase six three-bedroom houses and four two-bedroom houses on the Coseley New Village development, located on Sedgley Road West. The homes are currently under construction by Persimmon Homes Ltd and will form part of the council’s efforts to tackle housing need in the borough.
Councillor Ian Bevan, Dudley’s cabinet member for housing and homelessness, signed off on the plan after officers successfully negotiated a near 10 per cent discount on the asking price. Under the agreement, the larger three-bedroom properties will cost £270,500 each, while the smaller two-bedroom houses will be purchased for £230,000 apiece. The overall discount amounts to 9.8 per cent, helping the council to stretch its investment further.
The decision to purchase directly from Persimmon reflects the shortage of suitable sites for council-led housebuilding within the borough. A report presented to councillors said there was “a scarcity of newly built homes in the borough available for sale,” and emphasised that developers are not always willing to sell to local authorities. The report added that the Coseley New Village properties were well-placed to meet demand, being located in a densely populated area with strong transport links and access to local services. “The properties at Coseley New Village will be readily let to those in need on the waiting list,” it said.
Council leaders also stressed that buying ready-built homes from a national developer meant there was no development or delivery risk for the local authority. This, they argued, provided a sound business case in contrast to the uncertainty and delays that can accompany direct council housebuilding projects.
The £2.5m investment forms part of Dudley Council’s wider ambition to spend £10m on housing acquisitions in the current financial year. The move comes as pressure mounts on councils nationwide to increase affordable housing provision and reduce lengthy waiting lists.
One significant boost has come from changes to the “right to buy” scheme. Under the scheme, most council tenants are entitled to purchase their homes at a discount. Previously, however, a large portion of the revenue raised by these sales was claimed by central government. New rules now allow local councils to keep all of the money from right to buy sales, with the expectation that the cash will be reinvested in replenishing council housing stock.
This shift has enabled Dudley to build a war chest for acquisitions such as the deal in Coseley, providing the council with more flexibility to respond to housing shortages.
Despite its commitment to expanding housing provision, Dudley Council has faced hurdles in directly building new homes. One of the biggest obstacles is land availability. A lack of suitable council-owned sites has slowed down development, leaving the authority reliant on opportunities to purchase homes from private developers.
Another barrier has been limited access to government grants. The Homes England grant, which forms part of a £9.2bn national funding pot to support local authorities in delivering housing, has not been available to Dudley for the past two years. Without this external funding, the council has had to rely more heavily on capital generated through right to buy sales.
Nevertheless, councillors argue that the new arrangement with Persimmon represents a practical way forward. The report to cabinet said that purchasing new-build homes “makes for a sound business case,” particularly when compared with the risks of speculative building projects or acquiring older properties that may require significant refurbishment.
Councillor Bevan welcomed the agreement, saying it demonstrated Dudley’s proactive approach to providing homes for local people. The deal, he said, showed that the council was prepared to work with major developers to meet the needs of residents on the housing waiting list.
While the ten new homes represent only a small part of the borough’s overall housing demand, council officials believe the acquisition is a valuable step in addressing long-term challenges. With more than £7m still earmarked for investment this year, further deals could follow if opportunities arise within the borough.
