A proposal to create more than 200 homes on the site of the former St Clement’s Hospital is back on the planning agenda today after the facility’s owner submitted a new application for the project.

Norfolk and Suffolk NHS Foundation Trust (NSFT), which runs mental health services in the country, withdrew its original submission in January over a disagreement with the borough council over the proportion of “affordable” homes that should be built.

But changes have now been made to the scheme in this area, although the crux of the development remains the same, with the idea to convert the Victorian hospital into 48 homes and to build a further 179 homes in its grounds.

A spokesman for the council said the authority would not comment on whether it is suitable for approval or not, but added: “The new application covers a slightly smaller site and a substantial increase in the number of affordable homes.”

The original issue between the Trust and the council was that planners felt 35% of the new homes should be “affordable” and offered to a housing association.

The Trust originally proposed 4.5%, as it was believed a higher proportion would make the scheme uneconomical.

Mark Kittle, Head of Strategic Estates at NSFT, said: “The planning application for the future development of the St Clement’s site was resubmitted to Ipswich Borough Council last Wednesday, August 27.

“The application includes a revised provision for 20% affordable housing.”

If the new proposal is given the go-ahead, it will be part of a major housing drive currently taking place in Ipswich, with dozens of new council homes already being built and an outline application for more than 800 homes through the Ipswich Garden Suburb.

According to the new planning submission, the current Victorian hospital buildings will form residential units made up of 12 town houses, 10 duplex apartments and 26 apartments. Room will also be made for parking, public open space and a communal outdoor space.

Other buildings, with the exception of the social club building and bowls green, will be demolished and 179 homes created.

There will also be scope for new sport and recreational facilities.

The outline application for the Foxhall Road site can be viewed at www.ipswich.gov.uk