A former psychiatric hospital in Denbighshire, which cost tax payers �300,000 after planning problems, has been sold at auction for �310,000.

A number of people competed to buy the property at the sale in London but the identity of the new owner has not been made public.

We are keen to see the site suitably developed Ian Millar Denbighshire chief executive

Denbigh Hospital was initially put up for sale by North Wales Health Authority after it closed in 1995 but offers of about �1m for the 1840s listed building were refused.

The site - which was subsidised by council tax payers - was eventually sold for �155,000 in 1999 to a Lancashire businessman.

Gerald Hitman planned to build a housing development on the 120-acre site.

Derelict building

But he ran into opposition from local people and the former hospital has been left dormant.

Denbighshire council's chief executive Ian Miller said: "We are keen to see the site suitably developed.

"We are eager to meet the new owner or owners of the property so that we can see exactly what sort of plans they have for the further use of the site."

The hospital sign is still visible

Prior to Thursday's sale Denbighshire council had issued an enforcement notice on Mr Hitman, outlining his responsibility to increase security on the site and replace lost features from the building.

The notice followed a spate of vandalism reported at the derelict building.

A report published in July highlighted the real cost of the hospital's sale to the tax payer.

Auditor General for Wales, Sir John Bourn, used the sale of the Denbigh hospital as an example of how the disposal of property by the NHS in Wales had resulted in costs exceeding the total proceeds.