£57m scheme for 256 flats approved for Dudley's Cavendish House site

Plans to build 191 rental flats and a 74-bed retirement complex on the site of Dudley’s former Cavendish House office block have finally been approved, ending a three-year deadlock for the scheme.

The £57 million scheme has been welcomed by Dudley Council leader Patrick Harley, but falls well short of a previous £82 million scheme the developer had put forward for a supermarket, mini-shopping mall, hotel and cinema on the site.

In 2012 Avenbury Developments proposed ‘a new retail quarter in the town centre’, which it said would have created 500 jobs, connected to the bus station by a new public square.

The plans were approved the following year.

But the development never went ahead, and in 2023 the developer submitted revised plans for rental flats and a retirement complex. These stalled after council officers ruled them acceptable, voicing concerns about the height and design of some of the buildings, and the lack of ‘active frontages’ in a town-centre location.

But the council has now agreed to the scheme, which will be named the Old Leatherworks after the Hillman’s leather factory, which once occupied part of the site.

A block of 191 rental flats will be built on the site of the former Cavendish House, opposite the new £24 million Dudley bus station, which was demolished in 2021 after lying empty for more than 20 years.

A 74-unit retirement complex will be built on site of the neighbouring former B & Q, which was demolished at the same time.

Councillor Patrick Harley, leader of Dudley Council, said the site had proved difficult for the developer.

“I think the only way they could make it viable was to build as many homes on there as possible,” he said.

“There will still be some food-and-drink development, as we own around 45 per cent of the land in the area,” he added.

Councillor Harley said the council had also bought the derelict former Empire Tavern pub, and hoped to demolish it so the area could be developed for council housing.

“This is fantastic news for Dudley and a clear sign that our regeneration ambitions are continuing to gather real momentum,” he said.

“Securing planning permission for Old Leatherworks brings us one step closer to delivering a high-quality, modern living offer right in the heart of the town centre.

“This landmark development, alongside the new Dudley Interchange, will help create a more vibrant, well-connected place where people want to live, work and invest. It’s great to see another major regeneration project progressing and helping us deliver for Dudley.”