Homes England is exploring plans for a further 800 homes at its Lea Castle scheme in Kidderminster.
The government’s housebuilding agency secured consent for 600 homes at the former Lea Castle Hospital site last year.
It sold the land to Vistry Partnerships, working with housing association Citizen to deliver the £137m scheme as part of a wider partnership. The pair have completed demolition and commenced an eight-year build last October.
Homes England will now look to bring forward a further 137 acres across three parcels of farmland to the north, east and west.
The housing will be focused on half the site, with further development to include employment space, a primary school and a local centre. It will also incorporate green space, a playing pitch and grassland.
Lea Castle was previously used as a military camp in World War Two, and occupied by the Royal Army Pay Corps until 1960. From the 1960s to 2008 it was used as an NHS hospital and a mental health care home.
The agency anticipates delivery over a 10-year period beginning in 2024.
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