This unusual dwelling once stood on or near Ruiton Quarry, the exact location is not known at this time and information sought.
Roundhouse Road, off Robert Street seems to suggest that it was located near to Roberts Green Farm.

The building of local stone, could have originally been a windmill, it has long since disappeared but according to this Sunday Mercury article from 1932, it was a well-known landmark and curiosity at that time
The corresponding article associated with the picture is reproduced in full here.

THIS HOME IS REALLY CAT BURGLAR- PROOF

 An Englishman's home is his castle in the real sense of the word when the phrase is applied to the unusual structure occupied by Mr Herbert Stanley, who lives at Upper Gornal, near Dudley

Homeliness

 Known by visitors from all over the world as the "Round House," the building, which dates back many years, is strongly constructed.
 Looking rather like a castle keep, it has three storeys, which are reinforced by steel girders. The uUpper floors are formed of large flagstones laid across the girders.
 A Sunday Mercury representative who called at this novel home was shown over by Mr. Stanley.
 In contrast to the heavy-looking exterior, the inside was a picture of comfort and homeliness.
 Mr. Stanley, his wife and widowed daughter and her little girl, live in the Round House.
 Mr. Stanley, wo is 69, gets his living by selling salt. He said that the "Round house" had been in the occupation of his family for more than 60 years.
 So far as he knew the building was originally designed as a home. At one time the basement was used as a stone grinding mill, but is now used for storage.
 The house has a wall-approach leading to the front door, just a few feet from where a splendid view is obtained, of Malvern Hills on a clear day standing out in bold relief.

Well Protected

 The house would present a tough problem to a burglar-even of the "cat" variety.
 To get through either of the two windows a ladder would have to be used, and the intruder, once in the round rooms, would be subject to the most ruthless system of one-way traffic he had ever struck  The occupants of the "Round House" could put up a well-nigh impregnable defence even to the attention of Income-tax collectors.