TEIGNBRIDGE Council is interested in acquiring the old hospital site in East Street possibly for affordable housing and educational use.

A council spokesman said that Teignbridge has expressed an interest with the agents handling the sale although the process is at an early stage.

'The old hospital site has many potential uses which could benefit the community, including affordable housing and educational use. 

'The process is at a very early stage, and the site is open to expressions of interests from any potential buyers, rather than being an exclusive negotiation with the council,' he said.

The eight-and-a-half acre site will not be available for at least a year. Several hospital services remain there, including the South Devon Renal Unit which has a departure date of April 2010. Planning permission has been submitted to move it to Edginswell Business Park in Torbay.

Newton Abbot mayor and executive member of Teignbridge Council, Cllr David Corney-Walker, said he was aware of interest, although not personally involved in discussions.

'I think we are talking about mixed use, educational and we would probably like to see affordable housing. The town council has always favoured any use in keeping with our aspirations for the town – even small industrial or office use.'

The town centre site is likely to attract a lot of interest. It has two Grade II listed buildings: Templar House and the outpatients block, ideal according to one estate agent for conversion into apartments.

Richard Copus, of Richard Copus Estates, said: 'I think it is a fantastic challenge for speculative and social housing. It's the sort of place where you could have a lot of affordable housing and they would blend in very well, probably better than on a new estate.'

The government recently doubled the number of new homes it wants built in Newton Abbot by 2026 to 8,000, which could make the prospect of a high-density town centre development attractive.

The site might also house Newton Abbot's new vocational training centre.

Project manager Richard Haigh said he was considering the site.

'There have been discussions with no firm conclusions as to whether or not part of the site might be suitable. The project is looking at the feasibility of creating additional training facilities in the town in partnership with South Devon College.

'If we are able to secure funding to build such a centre, one possibility is the old ­hospital.'