Bulldozers were today knocking down Wolverhampton’s landmark Peal House – ready for the creation of a new 60-space car park for Wolves fans.

One corner of the building, once home to 350 Carillion workers, has already been chipped away with the rest of the eight-storey building set to disappear from the skyline over the next 10 weeks.

Wolves owner Steve Morgan is knocking down the building in Waterloo Road to make way for a 60-space car park, just 100 yards away from Molineux.

It is hoped the new spaces will help relieve match-day congestion around the Premier League ground.

The building was bought by Mr Morgan’s Bridgemere Group in January. When the plans for the work were first unveiled chief executive Jez Moxey said: “The purchase of Peal House was a specific, and rare, opportunity to purchase a sizeable piece of land close to Molineux.”

It is thought that Mr Morgan has long-term plans to develop the land.

There has been speculation that the site could one day be transformed into a leisure development and possibly a hotel, but that has not been confirmed.

The demolition plans have got started just months after Mr Morgan unveiled plans for a £40 million revamp of Molineux that will see capacity increased to 50,000. Carillion staff moved out of nine-storey Peal House on the corner of Waterloo Road and Ring Road St Peter’s and into the former Staffordshire Building Society base on Ring Road St Mark’s in May 2008.

It has been empty ever since.

The option of keeping the building for office space was originally explored, before it was decided to replace it with a car park which is expected to be used by football fans on match days.

Wolves fans were upset by Wolverhampton City Council’s decision to introduce a residents-only parking scheme in streets around Molineux in 2003.

Tomorrow Wolves are due to play away at Everton.