High-end homes will be built on the former Peterborough District Hospital site after The Gables was sold to new developers.
The announcement of 63 homes and apartments valued at £19 million comes three months after a provision for affordable housing at the Thorpe Road site was removed by Peterborough City Councillors.
Lands Improvement, which bought the 23-acre site for £7.75 million in 2013, had successfully argued to councillors that the costs of demolishing the former hospital had increased by £1.4 million, in part due to an unforeseen asbestos risk and added security after vandals struck.
It had also claimed that offers to buy the homes were £3 million less than the valuation they had been given by property consultants Bidwells.
Lands Improvement was also given a reduction of £219,000 on its contributions to the council having said it would halt the demolition works at the former hospital where 350 homes will be built.
The Gables, a Grade II Listed building which is being retained, has been bought from Lands Improvement by Weston Homes which will provide one and two bedroom apartments and three, four and five bedroom houses.
People are expected to move into the properties in early 2017.
Bob Weston, CEO of Weston Homes, said the site will comprise ideal homes for first-time buyers and family homes for those looking to upsize.
He added: “We anticipate that it will be welcome news to those from the local area looking for a new home.”
The decision to scrap the provision of affordable homes at the site and to reduce the financial contribution was grudgingly made by councillors in September, but Councillor Ann Sylvester, who voted against the change, told the developers that the houses were in such a prime location that ‘her cat could sell them’.
The demolition of the former hospital was completed recently and West Town Primary Academy is set to re-locate there next year.