More than 150 homes will be built on the 8.4 acre brownfield land site in Wolverhampton after developers secured £770,000 from the West Midlands Combined Authority (WMCA).
The site in Steelhouse Lane is being brought back into use after cash was used to clean up the land and prepare it for development by Lovell Midlands.
Mayor of the West Midlands Andy Street said: “This is a great example of how the WMCA is breathing new life into derelict, former industrial land by clearing the way for new homes and businesses.
“Our overarching goal is to use the money and the powers transferred to us from government to build a prosperous future by growing our economy in a way that benefits all our communities and gives everyone the opportunity for a decent job and an affordable home.”
The £2.5m scheme will see a mix of two, three and four-bedroom homes to buy and rent built on the land.
Work on the site, which will be named Saints Quarter, is set to begin this summer.
The site, which has sat empty since 2006, has had a number of former uses including a metals factory, which closed in 1997.
The scheme is a key part of the WMCA’s wider programme to support the building of homes within the Black Country, as well as Wolverhampton Council's regeneration of Bilston.
Wolverhampton Council's director of housing Kate Martin, said: “This is another major development site to support the regeneration of Bilston.
“We can now look forward to seeing more new homes being built this summer, in addition to over 400 homes already being developed at Bilston Urban Village.
“Saints Quarter will make a significant impact in providing greater home choice for the area, as well as continuing to support our housing growth plans for Wolverhampton.
“This development means more and better homes being delivered and adds to the extensive investment by Wolverhampton Council and other private investors in new housing, leisure, commercial and transport developments in and around Bilston.”
The WMCA has £760 million to support new housing and commercial developments which bring homes and jobs to communities.
More than 215,000 new homes need to be built in the West Midlands by 2031 to meet future housing demand and population growth.
Stuart Penn, Lovell’s regional managing director, said, “This important development will transform this former industrial site as well as help tackle the pressing demand for new homes in the area.
“We are proud to be able to deliver a scheme with such a variety of tenure which will really help local people get on the ladder and into a high-quality new home from shared ownership to affordable rent.”