A COUNCIL has defended shelling out a whopping £1.9 million for a former Wollaston care home property which appears to have rocketed in price by nearly 200 per cent in just two years.
Dudley Council confirmed in August this year that it had bought the former Rosemary Retirement Residence in Vicarage Road for £1.9 million, as well as the former Woodlands Retirement Residence in Bridle Road for almost £1 million.
Sold prices listed on Zoopla, however, show that Rosemary site sold for just £650,000 in March 2022 when it was first marketed following the closure of the retirement home in 2021.
Land Registry documents show it was then sold again just six months later on September 15 2022 for £1,275,000 – having increased in price by £625,000 (96 per cent).
Investigations show the property was bought by Manchester-based Grolar Developments Ltd – run by David Asher Searle and Guy Alexander James Horne of HS Property Group (HSPG) which unsuccessfully applied to turn the Rosemary site into a 23-bed HMO.
A planning application was refused in December 2023 after a raft of objections from neighbours.
Following approval given on January 25, Dudley Council then bought the property on March 1 this year for £1.9 million - a price tag that was 192 per cent higher than the sale price two years earlier.
A decision sheet signed off by a senior council officer regarding the approval to buy the Rosemary site says it was perceived the owner would offer the property to Serco “who are acting on behalf of central government as their next move for which no planning permission will be required to turn into a HMO”.
When asked why the financially stricken council had paid such a sum to acquire the property, Councillor Ian Bevan, Dudley Council’s cabinet member for housing, said: “The purchase price was based upon market rates following an independent external valuation, utilising ring-fenced housing budgets from central government that can only be spent on the purchase or development of new homes.”
Dudley Council has previously said the former Rosemary site is considered suitable for use as a house of multiple occupation (HMO), and The Woodlands may be converted into three family homes.
Wollaston councillor Andrew Tromans has called for full discussions to take place with residents regarding both sites. He has said HMO-style accommodation would not be welcomed and submitted an open letter to Cllr Bevan urging for a robust public consultation.
Cllr Bevan said of the matter: “We are currently exploring options for the use of the building and hope to have more to share early next year.
“If a change of use is recommended, this will be subject to the full and rigorous processes including the opportunity for people to give their feedback on proposals.”
Stourbridge MP and Wollaston councillor Cat Eccles recently met with councillor Jason Griffin and concerned residents to discuss the sites and she said she has been assured the council will discuss future plans with the community when ready.
She added: “With around 5,000 people on the council housing waiting list, more stock is desperately needed, but it must be right for tenants and the community.
"The term HMO often conjures up negative connotations but I’m very much of the opinion that not all HMOs are bad. The proposed tenants of Rosemary would be single people on the council’s waiting list, and the property would be staffed 24/7 to provide round the clock support. The Woodlands would be split into three family homes.”
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