The deal will see 79 houses and apartments built on the five-acre site on Brentry Lane with construction set to start this summer.

The land, close to historic Royal Victoria Park, was acquired by Lovell from NHS Property Services.

It been empty for more than a decade after the Brentry Hospital closed in 2000.

Sixty-four of the new homes will be for open market sale by Lovell while 15 homes will be for social rent and shared ownership through Knightstone Housing Association.

Lovell regional director David Gough said: “We’re delighted to have acquired this site. As well as creating much-needed open market properties for sale and new affordable homes, we are also excited to be helping Phoenix House ‘rise’ again through its refurbishment into brand-new apartments.”

The energy-efficient new properties will exceed the environmental performance standards set down in Level 3 of the Code for Sustainable Homes, incorporating sustainable technology including photovoltaic roof panels on some homes.