Part of the former Roundway Hospital site in Devizes is being marketed for £2.5 million.

Estate agent Carter Jonas is marketing the 3.3 acres on behalf of receivers.

The site used to house the former Katherine McNeile Clinic on the corner of Byron Road and Green Lane.

The site has detailed planning permission for 36 houses and 26 apartments of which 30 per cent would be affordable but Carter Jonas has suggested it could be used to build a medical centre or care home, although planning permission would be needed.

James Bainbridge, head of residential development at Carter Jonas, said: “We’ve suggested the site could be suitable for a medical or care home because of its proximity to Green Lane Hospital. We haven’t talked to the planning authority about that but it’s something many planning authorities are happy to consider instead of residential.

“However we have had encouraging interest for residential use, predominantly from national and local house builders. I think there is a shortage of land with planning permission for residential development.

“We are not surprised that there is good interest in the site. It’s a nice spot and sites with planning permission are reasonably rare.”

The deadline for offers is tomorrow.

The clinic was demolished after planning permission was granted by Kennet District Council in September 2008 and the site remain fenced off.

Norma Humphreys, chairman of Drews Park Village Association, said: “I have heard the site has been sold on several times. I think residents would like to see the land developed sympathetically. It has become a bit of an eyesore.”

Following representations by residents, the number of parking spaces was increased as part of the planning permission to 92 spaces for residents and 11 for visitors.