Lincoln Holdings, which owns the site, has decided not to go ahead with the planning permission it won a year ago to build 263 new homes.

Instead the developers want to build a 'close-care community' catering for older residents who no longer want to live on their own.

The scheme would include many shared facilities, a doctors' surgery and have nursing staff on site.

Jim Biek, project director for the King Edward VII site, told the Observer the overall number of 263 residential units in the original scheme would not change, nor would the proposals for demolition, refurbishment and extension of existing buildings which already had planning consent.

"The new planning application will propose a close-care community within the existing lawful use of the hospital site which is for a residential institution," he said.

"The scheme will enable the benefits of the restored Gertrude Jekyll gardens and the generous communal areas in the existing buildings to be enjoyed by a new community, one in severe housing need."

He said Chichester District Council recognised the need to develop new housing strategies for older people. "With a rapidly-ageing population the need for purpose built accommodation for older people is significantly undersupplied," said Mr Biek.

"A close-care community at King Edward VII would address this need on a site which was in fact built for this purpose, albeit to treat tuberculosis."

He said the new proposal would generate much less traffic than the existing plan and create between 100 and 150 jobs for local people.

"It is estimated traffic movements would reduce by 50 per cent from the consented residential scheme and only a third as many parking spaces would be required. A shuttle bus service would be provided for employees and residents."

He said the care village would offer different levels of care from those who wanted to live fairly independent lives to those who were in need of more assistance.

"There will be a host of shared facilities including lounges, dining rooms, card rooms, club rooms, a cinema and other facilities. There will also be nurses on site and a doctors' surgery.

"The residents will be people who have been living in their own homes and have reached the point where they acknowledge they do not feel secure on their own and we are bringing together the facilities they require."

Lincoln Holdings is currently talking to a number of potential partners to take the scheme forward.

Mr Biek said the new planning application would be submitted to the district council in the next few weeks.

What do you think? Click here to send a letter or leave a comment below.