Plans to transform an abandoned former psychiatric hospital, owned by the Greater London Authority (GLA), into 675 homes have been given the green light today by the Mayor of London's office.

Cane Hill Hospital in Coulsdon, which once appeared on the front cover of a David Bowie album and in which Charlie Chaplin's mother was a patient, has been unused since 1991. In 2010, large parts of the building were destroyed by a fire.

The site marks another milestone in the release of public land being driven by the Mayor of London. The Mayor has committed City Hall to sell all developable sites it owns since it took on 670 hectares of public land in 2012. So far, 145 hectares have been released with a development value of £3.6bn. This means 86% of the sites owned by the GLA are now actively marketed, progressing through planning or being developed.

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The Mayor's Executive Director for Development, Enterprise and Environment supported Croydon Council's decision to grant permission to Barratt Homes to redevelop the site into up to 675 new homes, 24% of which would be affordable, while 80% of the new homes will be three or more bedrooms, reflecting the need in the local area.

The Mayor of London, Boris Johnson, said: "The development of Cane Hill, one of London's most infamous abandoned sites, is part of a major release of public land being conducted by City Hall, with 86% of our sites now under way or being actively marketed. This decision marks the next chapter in Cane Hill's fascinating history, providing 675 much-needed new homes in this part of South London."

Sites released by the Mayor include Trenchard House in Soho, St Clements and Queen Elizabeth Hospital in Tower Hamlets, Lymington Fields in Dagenham, Catford Greyhound Stadium in Lewisham, and Greenwich Square in Greenwich.

(CD/JP)