The redevelopment of the derelict Cane Hill hospital site is part of a master plan for Coulsdon which promises to bring new life and prosperity to the town.

The master plan is being put together by the council working with residents, transport for London and the Homes and Communities Agency (HCA) to bring new business and leisure developments to the town.

Councillor Jason Perry, cabinet member for planning, said: "Cane Hill hospital has been redundant for over 20 years, and I'm pleased that we're finally coming to the point where the HCA will bring in a developer to take the redevelopment of the site forward."

It is hoped the master plan proposals will enhance improvements already made in Coulsdon which include the opening of Farthing Way and the street scene improvements to Brighton Road carried out as part of the Mayor of London's 100 Public Spaces programme.

Coun Perry said: "It's no exaggeration to say that the combination of the master plan and the proposals for Cane Hill offer a once-in-a-generation opportunity for Coulsdon to benefit from the enormous investment that will take place in the area.

"Together, they will bring much-needed homes, jobs and other facilities to the town and should ensure that its future is bright.

"In line with the council's unique approach to master planning, key local residents, businesses and other stakeholders have been closely involved in the process.

"This will be put on hold until the developer is procured, and then restarted once a company is appointed.

"We want a master plan that's deliverable and not an unrealistic dream, so it will be vital that the developer takes up the reins in partnership with the council and finishes the excellent work that has been started."