A £4.7 million contract to build a Kidderminster housing development has been won by a Stourport firm.

Thomas Vale Construction’s housing division has been awarded the deal to deliver the residential development for Waterloo Housing Group.

The project, for Stourport Road, Kidderminster, is situated on the former Reilloc Chain site, which previously manufactured chains, primarily for the mining industry and was historically used for wool spinning and heavy industrial works.

The scheme requires the demolition of the existing brick buildings, followed by the design and build of 56 units, comprising various house types.

The properties are mainly semi-detached, with some terraced. They will be available to local families on a rent or shared-ownership basis.

Ian Cox, housing development director at Thomas Vale Construction, said: “This is excellent news for the region. We are keen to ensure that our local supply chain is actively involved in transforming this site.”

The development is intended to help to meet the need for more affordable housing in a district where house prices are predicted to increase by 20 per cent by 2020 and rental prices by 38 per cent, according to the National Housing Federation's Home Truths report.

Jason Clarke, project manager at Waterloo Housing Group, added: “We are pleased to be working with Wyre Forest District Council and locally-based contractor Thomas Vale Construction to bring this brownfield site into use for affordable housing.

"The project will deliver a range of sustainable new homes for local people, with 33 homes for rent and 23 properties for shared ownership to help those wanting to get a foot on the housing ladder.”

The first phase is expected to complete in January, 2015, with phase two being completed soon after, in February, 2015.