The biggest scheme of council house building in Sandwell since the 1970s, which will see between 500 and 1,000 homes built to beat the slump in the property market, was revealed today.

Housing chief Councillor Mahboob Hussain said he would be applying for tens of millions of pounds from the Government to make the plans a reality.

Vacant land on Hamstead Road in Great Barr is being earmarked for development as well as the former Bearwood House in Bearwood Road, Smethwick.

Councillor Hussain will also commit the council to buying back homes it sold to tenants under the right to buy scheme.

The scheme, which could cost up to £50 million, will aim to help the hundreds of families who are struggling to get onto the housing ladder.

Latest figures, released in February, showed that 8,847 people were on the waiting list for a council home in Sandwell.

“We are all set to build council houses again,” Councillor Hussain said.

“We are getting to the final stages where I can take legal advice and prepare a bid for the Government.

“I expect to have all the advice I need within four or five weeks and I expect to be looking for in the region of £20 million to £50 million.

“We will be asking for a lot of this from the Government. It is a lot of money to ask for but we are confident that it will not cost anything to the Sandwell ratepayers.

“We want to build between 500 and 1,000 homes because there is a shortage of social housing and a very big waiting list.”

The number of council houses has fallen from 35,400 to 29,000 since 2004 under the right-to-buy scheme. It led to 22 people being made redundant by Sandwell Homes.

Councillor Hussain said he was looking at sites.

By Daniel Wainwright