The house builder’s South Midlands office has purchased the 42 acre site with outline planning permission already in place for the 650 homes.

A reserved matters planning application has been lodged with Birmingham City Council’s Planning Committee to build the first phase of 98 luxury family homes.

Persimmon Homes South Midlands Managing Director, Andy Peters, said: “We are investing £100m in this iconic site and look forward to beginning work on what will be a six to seven-year long project that will breathe new life into Selly Oak and create up to 1,560 jobs.

“It is an exciting opportunity for us as developers to build homes which meet local needs and reflect the history and unique situation of the site, integrating into Bournville and the surrounding areas.

The site has developed over 140 years from the 1870’s workhouse and later the Selly Oak Infirmary. It now provides an opportunity for a mix of brown and greenfield housing development.

He added that work on site is expected to start in April with some historical buildings retained for conversion into homes.

Iain McArthur, director of DTZ Residential Land Agency, who led the disposal on behalf of University Hospital Birmingham, said: “This is the largest brownfield residential regeneration site in Birmingham to be marketed and sold within the last 10 years.

“Developer demand for the former Selly Oak Hospital site was extremely competitive demonstrating stronger market appetite for developments within the region all positively contributing to the region’s growth. The gross land value paid by Persimmon Homes demonstrates a record price for land reflecting its premium position situated on the edge of Bounville Village Trust land but also renewed confidence within the development sector.”