Almost 200 homes will be built on the former site of Walton hospital.

Approval was today granted for the scheme, which includes an Aldi supermarket, on land once home to the old Aintree University Hospitals’ Walton Day Care and Outpatient Centre.

City planners praised the proposal before approving it this morning, with work expected to begin in November.

The development off Rice Lane will include 195 properties with a mixture of houses, flats and bungalows. As part of the plan 64 houses and apartments will be designated for affordable rent and 37 houses for shared ownership by housing association Riverside.

Welcoming the decision to approve plans, Riverside’s project manager Conor McGuigan said: “We are committed to building stable homes for those at the sharp end of the housing crisis so are delighted to announce that we will start work on site in November.

“This development is possible thanks to the Homes and Communities Agency, which is providing funding through its Affordable Homes Programme.

“We share the government’s ambition that anyone who works hard and wants to get on the property ladder should have the opportunity to do so. As such, we are delighted to be able to offer shared ownership for aspirational first-time buyers, alongside affordable rent for the most needy.

“We consulted neighbouring residents prior to submitting the application for the development, which has been designed to be in keeping with the surrounding site and will respect the setting and views of the listed clock tower building.”

The hospital site was demolished in 2011 after it closed its doors in December 2010. The new development will be next to the new Clock View medical site, which opened earlier this year off Rice Lane, and will also feature a 133 space car park for the Aldi store.

Hundreds of consultation letters were sent to neighbours living near the site, with only one letter of response received by the developers.

In a report which went before councillors sitting on the planning committee the project was recommended for approval with the belief it “would contribute to the sustainability of the area”.