Work has started to build 34 new homes on parts of old hospital site – with the promise of a new play area.

Developer Elan Homes has begun clearance and demolition works on the final part of the ‘Blue Zone’ at Macclesfield Hospital to prepare for new homes.

The Blue Zone is an area of Macclesfield Hospital which has been sold off to developers to pay off debts.

Cheshire-based homebuilder Elan Homes bought a chunk of land known as Hope Park, with planning consent for 34 homes. It will offer 29 houses in a choice of three and four-bedroom designs, with the remaining five homes providing affordable housing.

Elan is already building a database of potential buyers. It marks the final phase of development at the former hospital site.

As part of the deal for planning permission, Elan must give £51,000 to the council for a new play area.

Andrew Morgan, land director for Elan Homes, said: “We were keen to be part of the redevelopment of the former hospital site, helping to bring the land back into good use by providing new homes.

“A lot of regeneration work has already taken place and we’ll be adding to that by investing in the area for the benefit of the wider community.

“For example, we will pay around £51,000 towards an off-site children’s play area and gift more than £27,000 to recreation and outdoor sports provision.”

A contribution towards highways works has already been made by the developer.

The first of Elan’s homes at Hope Park Mews are scheduled to be released for sale in the spring, but the developer is already looking for more land to build on in the area.

Mr Morgan said: “One of the things that appealed to us about this site is that it’s within walking distance of Macclesfield town centre. With local facilities including a nursery and supermarket, it’s perfect for young families.

“Homeowners will be able to walk through the public open space forming part of the development and cross the road to nearby West Park.”

The redevelopment of the Blue Zone was first mooted nearly a decade ago when East Cheshire NHS Trust, which runs the hospital, needed to sell off the site to pay off its debts in a bid to achieve Foundation Status.

In an earlier phase, Keyworker Homes converted the historic Henbury House and Ingersley Building into apartments for doctors and nurses and 10,000sqft of offices.