Plans to transform the site of an old hospital into housing have been approved by Newham Council.

The grounds of the former Plaistow Hospital, in Samson Street, is set to be replaced by 169 new homes including 40 per cent family dwellings.

The scheme, presented by Peabody housing association, was given the green light by councillors at the Strategic Development Committee yesterday.

The housing units range from 49 one bedroom flats. to three bedroom houses, maisonettes, flats and duplex apartments.

Peabody say they consulted widely with the local community and the site will contain 85 private properties and 84 “affordable” ones.

The development, designed by architects PCKO, is also aiming to use sustainable and energy efficient building techniques, achieving Code for Sustainable Homes Level Four with a carbon dioxide emission reduction of 32 per cent.

Cllr Conor McAuley, executive member for Regeneration and Strategic Planning, said: “We believe this development can prove a major boost, both to Plaistow and to Newham.

“It will provide a wide range of planning benefits for the site and surrounding area.

“It will transform this key brownfield site which has lain vacant and closed to the public since 2007, creating a unique landmark cluster of high quality buildings.”

Claire Bennie, director of development at Peabody said: “As part of Peabody’s 150th anniversary celebrations we undertook an architectural competition for the Plaistow Hospital site and we are now delighted to see PCKO’s winning entry be approved by Newham.

“Construction work will begin on the site in March with the new homes completing in 2015.”