PLANS to build 500 homes on the site of a former Glasgow hospital have been ditched.

PLANS to build 500 homes on the site of a former Glasgow hospital have been ditched.

A £50million joint-venture by property partners Gladedale and Bellway at Ruchill Hospital in the north of the city was billed as one of the most significant new housing projects in Glasgow and was due to start early next year.

But the Evening Times can exclusively reveal the planning application has never been submitted to Glasgow City Council, and probably won't be in the near future.

And the land, which was due to be sold by Scottish Enterprise to the developers, has never changed hands.

A spokeswoman for Gladedale said today: "We have currently withdrawn on negotiations surrounding Ruchill hospital site."

The hospital and its grounds opened in 1900 and was a working hospital until 1998. It dealt mostly with infectious diseases.

The development, and the jobs it would have created, was heralded as a major boost for one of Glasgow's poorest areas.

It was intended to be a predominantly private development, though many still hoped housing association homes would make up part of the project.

News that the plan for the 40-acre site looks doomed sparked anger and disappointment.

Billy McAllister, SNP councillor for the area, said: "With these private developers there is only one objective money.

"It's a disgrace the way local people have been treated the companies involved should be brought to task.

"It is time for a change in policy on housing in Glasgow we need to look at the advantages of social housing."

Labour councillor Jim McKechnie also backs a rethink on housing policy. He said: "I have always supported the development of public housing in the community."

Patricia Ferguson, MSP for Maryhill, said: "I'm very disappointed.

"This has been a long-awaited project. Finally things seem to start moving and we hear it is not going to happen."

Meanwhile the landmark hospital building sits decaying.

The pull-out comes at a time of plummeting house prices.

Scottish Enterprise now faces the task of finding a new developer for the site.

A spokeswomen for Scottish Enterprise said: "We are currently considering options for the future of the site as part of the ongoing review of our property portfolio.

"However, the site has been zoned for residential use."

A city council spokesman confirmed no application for the development had ever been received.