Work on a £7.7 million housing development in the grounds of the former Rauceby Hospital will begin this Spring.
Lovell Homes will build 36 two-, three- and four-bedroom houses on land off The Crescent and Roxburgh Drive at Greylees, west of Sleaford.
North Kesteven District Council approved plans for the development in September 2015, with amended proposals given the green light in December 2017.
The homes will have a traditional mix of brickwork, stone, render and slate grey tiles, reflecting the traditional character of homes in nearby Rauceby.
Hedgerows and trees along the boundary of the development will be retained and reinforced with new planting of native species.
The site of the former psychiatric hospital has long been of interest to developers.
Plans for 106 homes which would have seen the hospital bulldozed were rejected by councillors in 2016, who were concerned about ruining the history of the site.
The decision was appealed by house builders Barratt Homes, but dismissed by government planning inspector David Rose, who said more could have been done to show that the proposal was the best way to achieve a benefit for the public.
The former Rauceby Hospital site near Sleaford has been saved from the bulldozers thanks to a government inspector dismissing a developer’s plans to have it demolished for housing.
Plans for 106 homes on the site on Murrayfield Avenue were rejected by councillors in 2016, who were concerned about ruining the history of the hospital.
The decision was appealed by house builders Barratt Homes, who argued that it was not financially viable to retain and convert as many of the hospital buildings as the council requested in order to better preserve the heritage asset.
However, government planning inspector David Rose dismissed the appeal, stating that Barratt Homes could have done more to show that their proposal was the best way to achieve a benefit for the public.
Separate proposals were submitted by Project 2000 (Greylees) Ltd for the demolition of Orchard House, which forms part of the hospital, to make way for 43 homes.
South Lincolnshire Community and Mental Health Services NHS Trust closed the main hospital building in the 1990s, but retained Orchard House as its headquarters.
The main building has been abandoned for several years, with other parts of the site being redeveloped from 2004 onwards.
Lovell regional managing director Robert Adams said: “We’re looking forward to starting work on these desirable new homes which will significantly extend choice for local homebuyers in this highly convenient location.
“We’ll be offering a range of beautifully designed properties, suitable for people at all stages of the housing ladder, from first-time buyers to those looking for a ‘forever’ family home.”