Council to sell former West Bromwich gas showroom site to housing group
Sandwell Council has agreed to sell the former site of The Gas Showroom in West Bromwich for £270,000.
The site had two valuations by real estate company Savills, with one amounting to £427,000 and the second to £270,000.
Sandwell Council leader Councillor Kerrie Carmichael, explained that the valuation of £270,000 would be accepted as it allowed for the delivery of 27 affordable rent homes, as opposed to six for the greater sum.
The site, on Lombard Street West/High Street will be sold to Black Country Housing Group.
Sandwell College has approached the group to acquire a different site, Shaftesbury House, on High Street in West Bromwich, which was acquired from the council in June 2020.
The college needs a site to deliver an engineering campus, with the former Shaftesbury House site identified as the primary location.
Black Country Housing Group has agreed in principle to dispose of the site, meaning the group now requires an alternative site to deliver its own residential project in accordance with Homes England funding.
The disposal of the site to Black Country Housing Group will enable the delivery of 27 affordable rent units which the council say are much needed.
Councillor Carmichael said: "Private affordable rent is an issue for many resident excluded from housing as they can't afford rent.
"We have had two valuations for the site, one is for market value which would be to a market developer.
"If they built on this land, the council would only have nomination rights for six of the 27 homes.
"Or the option we have chosen, where the land is sold for the lesser value, but we have 100 per cent nomination rights on 27 homes."
The cabinet report states that a recent study estimates a third of Sandwell households are excluded by affordability from entry level private rented sector and entry level home ownership.
As part of the deal, the council has also agreed to lift restrictions, allowing for the Shaftesbury House site to be used by Sandwell College to deliver its engineering campus.
The report states the lifting of restrictions poses no financial issues for the council as the site was sold at at maximum market value.
