Bond Wolfe, a prominent property auctioneer, has announced plans to host a live-streamed auction for the Londonderry House purpose-built student accommodation (PBSA) development site. This eight-storey building, comprising 175 bedrooms, is strategically situated at 2 Newton Street in Birmingham, in close proximity to Aston University and Birmingham City University. The site was originally constructed atop a car park, providing a unique location for student living.
Details of the Development
The ground floor of Londonderry House includes essential amenities such as a reception area, an office equipped with a kitchen, a laundry room, utility rooms for electricity and water, and ample storage facilities. Additionally, it features a large, covered car parking area, ensuring convenience for residents. The design of the building accommodates a variety of living arrangements, with the eighth floor providing external access to the ninth floor, which contains four cluster units. These units comprise one six-bedroom unit, two five-bedroom units, and one four-bedroom unit.
Room Configurations and Facilities
From the ninth floor to the sixteenth floor, the development consists of four cluster units per floor, designed with a mix of one six-bedroom unit and three five-bedroom units. Each of these units is equipped with en-suite facilities and a shared kitchen, catering to the needs of modern students. Furthermore, each floor includes a studio unit featuring an open-plan bedroom/kitchenette and a shower room with a toilet. The total breakdown of the accommodation includes 21 bedrooms on the ninth floor, complemented by an additional 154 bedrooms spanning the tenth to sixteenth floors, yielding a grand total of 175 bedrooms—167 of which are en-suite, alongside eight studios. All units benefit from electric heating.
Compliance Challenges and Planning History
Despite its attractive features, the property is currently grappling with significant fire regulation compliance issues. Initially, planning permission was granted back in 2001 for converting the office building into student accommodation targeted at NHS key workers. Most recently, a planning application submitted in 2022 by PBSA operator Capitol Students sought to address these concerns, achieving approval for a £15 million three-storey extension aimed at funding critical re-cladding works necessary for the building to meet safety standards. Unfortunately, this planning consent has now lapsed, and the property has remained unoccupied since 2021, following a notice from the fire authority due to non-compliance with fire regulations.
Upcoming Auction Details
The auction for Londonderry House is scheduled for 9 July 2026, with a guide price set at over £695,000. The building has approximately 72 years remaining on its 96-year lease, which commenced on 24 April 2002, and it is subject to a peppercorn ground rent. Notably, the lease contains provisions for potential negotiations regarding a revised 154-year lease with Birmingham City Council, indicating a possible path forward for future development and compliance.