The new-build Perry Barr estate, described by local people as a ghost town, with many flats standing empty for more than a year, was intended to be an athletes’ village for the Commonwealth Games, which Birmingham hosted in 2022.
Due to delays caused by Covid, the development was not completed in time for the event so athletes were housed in student accommodation. The council said the Perry Barr apartments would become homes for local people instead.
But the properties have sat empty for months, with the council unable to sell them due to a lack of “market appetite” for one- and two-bedroom apartments in the area, and issues with mortgage providers valuing the properties at less than they were being sold for.
A report presented to the council’s cabinet last week said selling off 755 properties to a private bidder, who has yet to be named, would result in a “significant loss to the public purse” but was the best outcome.
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The council has spent £325m on the development, of which £292m was borrowed. After selling off the homes, it is expected that £142m-£152m of debt will remain unpaid, costing £8m-£9m a year over a 40-year period to repay, taking the projected total loss in the region of £320m.
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