£150 million scheme revives former steel site

A £150 million transformation of a long-derelict Wolverhampton industrial site is beginning to take shape, with its first 30 homes now ready for residents.

Wavensmere Homes has completed an initial 30 properties at Wolverhampton Canalside South, a 17-acre development on the former British Steel and Crane Foundry site, which had stood derelict since 2009.

The scheme will ultimately deliver 533 energy-efficient homes, comprising 378 townhouses, 145 one and two-bedroom apartments and 60 co-living apartments.

Half of the houses have already been sold off-plan, including 131 acquired by global real estate investment company Kennedy Wilson for rental.

More than £25 million has been invested since construction began in early 2025, covering land assembly, remediation, infrastructure, groundworks and building work.

Around 100 tradespeople are currently working on site, with all 153 houses in the first phase expected to be completed and occupied by the end of 2027.

An artist's impression of how the completed scheme will look

Wavensmere Homes’ managing director James Dickens said demand demonstrated the appeal of transforming a previously derelict site into a well-connected city centre neighbourhood.

He said: “The huge demand to live at Canalside South – a former derelict industrial site that was a blot on Wolverhampton’s landscape – speaks volumes about the appeal of this superbly connected city centre. 

“We have already spent over £25 million on site works and construction to be at the major milestone we’ve reached today – welcoming the first new residents.

“With the significant work we’re undertaking to open up new canalside walking routes into the adjacent train station and transport interchange, we are excited to see the ripple effect this £150 million scheme could bring about. 

“This is Wolverhampton’s time to shine and our emphasis on quality placemaking will ensure this project become a nationally important trophy asset for the city.”

Councillor Stephen Simkins, City of Wolverhampton Council leader, added: “The council, working with the Canal & River Trust, set out a clear plan and assembled derelict brownfield sites along our canal network with a vision to bring them back to life.

“We could not be more delighted with how our chosen developer for this site, Wavensmere Homes, has brought this scheme forward, delivering major transformation with the first new homes completed on the doorstep of the city centre.

“This is one of the largest new housing developments in the Midlands, creating hundreds of jobs for local people, and shows how the council – working collaboratively with the private sector – is making a real difference for city residents.”

Designed by Glancy Nicholls Architects, Canalside South will also feature seven acres of green space and 14,400 sq ft of commercial accommodation within disused railway arches.

Homes will incorporate air-source heat pumps, solar panels and electric vehicle charging, with the wider development scheduled for completion by mid-2030.

Mike Pegler, president of Kennedy Wilson Europe, added: “The quality, character and attention to detail of the newly completed homes at Canalside South are a credit to Wavensmere Homes. 

“This scheme is popular because it’s so close to the shops, workplaces and attractions. 

“Meanwhile, the adjacent transport interchange offers frequent 16-minute trains into Birmingham New Street Station.

“Wavensmere’s reputation for urban regeneration gave us the confidence to make our first investment in Wolverhampton, as we continue to grow our UK single family housing platform. 

“These homes will offer residents high quality, well-designed and sustainable rental housing, with ultra-low running costs.”

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