Barratt Developments and Ward Homes have received outline permission for the £250m redevelopment of Cane Hill hospital in Coulsdon, Surrey.
The masterplan for the 205-acre former hospital site includes around 650 homes and 70,000 sq ft of commercial space.
The outline approval includes detailed planning for a 187-home first phase. Barratt and Ward worked with the Greater London Authority and Croydon council to produce the masterplan following a development deal signed in August 2012.
Construction is hoped to begin later this year.
nick.whitten@estatesgazette.com