The city council says it was in ‘poor condition’ and was sold for ‘nearly double its original guide price’
Ashtree House, a former council-owned property, has been sold at auction(Image: Derby City Council)
A “key” Derby council-owned site that was left vacant following a major fire next door has sold for almost £1 million – that’s despite “serious concerns” over the sale itself.
Ashtree House in Osmaston Road is a 19th Century property that played a key role for Derby City Council’s children’s services department.
It was primarily used for “court ordered family time” – allowing cared-for children to spend time with their family in a supervised environment.
But a major fire at the neighbouring former La Gondola hotel and restaurant in 2024 meant staff and children had to relocate on safety grounds. A report said the building was in an “extremely poor state of repair”.
Last year, Ashtree House was put up for sale, with the council now revealing that it sold for £920,000 – a figure the authority said was “nearly double its original guide price”.
The sale was far from straightforward after being agreed at a council cabinet meeting just over a year ago. The Conservative and Liberal Democrat groups both disputed the sale.
The Tories called on council leaders to retain Ashtree House and transform the property into affordable council homes.
At the time, Conservative Councillor Jonathan Smale said: “As a group, we have serious concerns about the disposal of Ashtree House, which we feel must be addressed. While we agree with the decision to use the land for housing, we strongly disagree with the Labour administration’s approach of involving a developer to build it.”
Liberal Democrat councillor Lucy Care also made a strong objection, saying: “We know as a council that we are desperately short of affordable housing. I find it really frustrating when we have a site like this that we are saying we can’t deliver it.”
The council defended the move, saying it had considered developing the property itself into affordable housing, but said that the benefits of holding onto the property did not outweigh generating a “significant” sale in quicker time.
Councillor Kathy Kozlowski, Derby City Council’s cabinet member for finance, said: “The decision to sell Ashtree House is part of our ongoing commitment to responsible asset management and achieving ‘best value’ for the people of Derby.
“Ashtree House has a long and proud history of service, but as our requirements for modern office and service space evolve, it is essential that we make the best use of our buildings and land.”
The former children’s services department building has been bought by Godfrey Care Ltd, a specialist care provider which manages several residential homes across the region.
The new owner has now submitted a planning application for it to become housing for seven young adults with learning difficulties.
Care provision would be delivered on a one-to-one basis with 10 carers and two managers on site, working shifts, seven days a week. No staff will stay overnight.
The proposal states there will be minimal changes to the building’s appearance “to ensure the residential character is preserved”.
Andy Barnes, co-CEO of Godfrey Care, said: “Ashtree House will be transformed through a bespoke design and specification tailored to the individual needs of each person we support.”