The ‘haunted’ Victorian asylum hospital that is now set to be turned into homes

North Wales complex hosted television programme ‘Most Haunted’ but now it’s set for redevelopment

An abandoned Victorian asylum that has fallen into disrepair is set to be given a new lease of life thanks to a £107m redevelopment plan.

The former North Wales Hospital was built in 1844 to provide care for people suffering from mental illnesses.

By 1956 it had 1,500 patients, but since its closure in 1995 the historic site in Denbigh has been plagued with arson and vandalism.

The vast building has fallen into disrepair since its closure in 1995 (Alamy)

It has also attracted a host of paranormal hunters. In 2008, television programme Most Haunted broadcast a live ghost investigation from the dilapidated building.

A decade later, Denbighshire council took over the Grade II-listed building, and now the North Wales Economic Ambition Board has announced a £107m investment project to redevelop the derelict 53-acre site.

Delivered by civil engineering company Jones Bros, the project will see the building restored with homes, commercial units, as well as green community spaces.

It says the plans will “transform this landmark site so it can again become a central part of the community”.

At its height, the hospital housed children with learning disabilities, dementia patients and people with addictions.

They were kept in difficult conditions at the hospital before opinion on mental health treatment began to change.

In the 1960s then-minister for health, Enoch Powell, earmarked it for closure, but it wasn’t until 1987 when the decision was taken before its last patients left in 1995.

The new development at the hospital will create up to 360 apprenticeship opportunities and 70 full-time jobs by 2035.

Wales office minister, Nia Griffith, said: “It is fantastic news that this development is moving forward and breathing new life into this iconic site, which has been derelict for so long.

“Once it’s completed there will be new homes, business spaces and open green spaces to benefit the whole community.”

Huw Jones, chair of Jones Bros, said: “The project still has a long way to go, and many elements need addressing and agreeing before we can begin work on site.”

“As a local company we are very aware of the site’s significance and the part it has played in the town’s history,” he added.