A landmark site is to be redeveloped into new homes in a deal worth £67.8million.
Lancaster Moor hospital, a Grade II listed building, is to be converted and there will be up to 440 homes created on the 15.76 hectare site.
The PJ Livesey Group and Story Homes have been chosen by The Homes and Communities Agency (HCA) to develop the site.
Outline planning permission has already been granted for the new build homes and the conversion of the former hospital annexe and the adjoining Campbell House, into apartments and houses. The HCA has worked in partnership with Lancaster City Council and English Heritage to prepare the site for the development of the new homes.
Designed by architect Arnold Kershaw, Lancaster Moor was built in 1882 as an annexe to accommodate mental health patients. More latterly it was used by the NHS before closing in 1999.
Work is expected to start on site this month. Deborah Mclaughlin, North West Executive Director at the HCA, said: “Having lain empty for a number of years, it’s great that we can now begin to make this an attractive place to live.”
Andrew Dobson, Lancaster City Council’s Head of Regeneration and Policy, said: “The hospital annex is an important Lancaster landmark alongside the M6 corridor and its renovation, together with new build housing scheme, will make a valuable contribution to the Local Plan.”