£150m Canalside regeneration scheme gets underway

Work has officially begun to transform a 17.5-acre former industrial site in Wolverhampton city centre into Wavensmere Homes’ £150m Canalside South residential development.

After sitting derelict for 15 years, the brownfield site is ready for a transformation, with over 530 homes, along with new commercial and community amenities planned.

Enabling works are now underway, with groundwork set to begin in Q2 2025.

Phase one will include 153 two- and three-bedroom homes, with the first phase expected to be completed by Q2 2027.

Richard Parker, Pat McFadden, Henriette Breukelaar, Cllr Stephen Simkins and James Dickens on site

The development has secured £20m in funding from the West Midlands Combined Authority (WMCA) and Frontier Development Capital, a milestone recently announced by Mayor Richard Parker.

In partnership with the City of Wolverhampton Council and the Canal & River Trust, this waterfront site—right on the Wyrley & Essington Canal and the Birmingham Main Line Canal—is set to breathe new life into the area.

Designed by Glancy Nicholls Architects, it forms one of the largest city centre residential development opportunities in the Midlands and is set to open up a new walkway to the city core, reducing the previous walk time by 20 minutes and igniting investment into a commercial corridor.

The project will be rolled out in three phases to minimise disruption.

James Dickens, managing director of Wavensmere Homes, said: “Having received confirmation of £20m of development funding from the West Midlands Combined Authority and Frontier Development Capital only last week, we are thrilled to be demonstrating our focus on deliverability by starting work at Canalside South immediately. With Wavensmere’s proud history of regenerating vacant land in the Black Country, we have mobilised our local and regional supply chain and will transform this current eyesore into a landmark development we can all be immensely proud of.”

Wavensmere Homes plans to build 378 two- and three-bedroom townhouses, aiming for an EPC-A energy rating, alongside 145 one- and two-bedroom apartments.

The development will also include a 10-unit co-living building, each containing six bedrooms, designed to offer affordable housing options for young professionals.

A total of 54 houses, as well as 80 apartments and co-living units, will have waterside views and the currently disused railway arches on-site will be repurposed into 1,338 sqm (14,400 sq ft) of commercial space for future tenants.

Cllr Stephen Simkins, leader of the City of Wolverhampton Council said: “Seeing this impressive scheme get on site is monumental and shows the game-changing regeneration the council and its partners are delivering in Wolverhampton. As part of our brownfield first strategy, bringing life back to the redundant sites along our canal network is critical to boosting footfall into our city centre and building communities.

“The decision to put our faith in Wavensmere Homes has paid off with one of the largest new housing developments in the Midlands and the hundreds of jobs for local people that come with it. Ultimately, this £150m development will enable Wolverhampton residents to benefit from superb connectivity, amenities, and health and wellbeing opportunities at this wonderful heritage location.”