North West-based housebuilder Morris Homes has bought land in the grounds of the former Eccleston Hall Hospital at St Helens in Merseyside.
A low-density scheme of 39 houses with six properties per acre (15 per ha) is planned. Some of the houses on the 12.7 acre (5.1ha) site will sit within 0.25 acre (0.1ha) plots.
Prices are expected to range from £115,000 to £150,000.
The hospital site is currently vacant grassland but it contains the remains of a medieval manor estate, records for which date back to 1373.
The field archaeological department of the National Museum and Galleries of Merseyside will carry out archaeological excavations before development starts.
The hall itself is outside the planning permission granted by St Helens council, although the company will be improving the landscaping in the grounds.
Houses will go on sale later this year.