The original Goodmayes Hospital site could be sold to a private investor and developed into housing in order to raise money for the NHS, a report has revealed.

The Victorian building, which was built as an asylum in the late 1800s, is no longer used to house patients but still has some staff offices.

The site, in Barley Lane, which is currently owned by the North East London Foundation Trust, is set to be sold as part of government plans to raise money for the health service.

According to the latest NHS Surplus Land report, the building costs the trust £463,920 in annual running costs but the trust estimates that 249 houses could be built on the site.

It notes that lack of planning permission, a buyer, and the need for investment could hinder the sale of the building.

The former West Ham Borough Corporation started building the asylum in 1899 and admitted the first patients in 1901.

Lewis Angell was chosen as the architect for the grand design.

One of his other works, the Canning Town Public Hall and Library, is Grade II listed.

But Goodmayes Hospital was never given the same protection, meaning the buildings can be demolished, extended or changed without permission.

A Nelft spokesman said any sale would not occur until 2020 at the earliest.

He said: “NELFT has been vacating from the old part of Goodmayes Hospital for a number of years, as the building is not fit for purpose anymore.

“The only areas that we will retain are the inpatient areas, Sunflowers Court and Tantallon House - which will be used as a base for home treatment team staff.

“The old part of the site will therefore be surplus to the trust’s requirements and it is likely that this will be sold off as soon as planning has been received.

“However, this will not be until 2019/20.

“This will also be dependent on the local plan proceeding and this has been subject to the planning inspector - who has held public hearings during the spring and summer of this year.

“The trust will not know the outcome of the inspectors’ conclusions until autumn of this year.”