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A PIONEERING community group hopes to provide permanently low-cost homes on the derelict Cashes Green Hospital site.
The Stroud and District Community Land Trust (SDCLT) has been invited to make a case to government land agency English Partnerships, which manages the abandoned site.
Around 70 would-be homeowners from the Five Valleys signed up to the group at the foundation meeting in Stroud on Thursday, April 7.
Stephen Wright, director of Gloucestershire Rural Community Council said: "It is about barnraising, creating a pool of permanently affordable homes for young families."
"It is about building inclusive, thriving communities through the democratic ownership and stewarding of land."
Whitehall officials agreed to take a look at detailed proposals after meetings with David Drew in Westminster. He has already agreed to join the SDCLT board.
"We want to prove that we can make it work in Stroud," he said.
Under the scheme, residents would "buy" a long-term lease from the mutual trust without the cost of the land - saving as much as 40 per cent of its value.
As the buyer does not own the land, when they wish to sell it can be sold again at the same cheap rate, with the seller receiving a cut of the equity the property has acquired.
Co-founder Max Comfort said: "What has increased, because of the lack of housing, is the value of the land.
"The whole point is to take the land value out of the equation."
The hospital land would also be used to provide space for community facilities like play areas and allotments.
Co-founder Martin Large said: "It is not just about building affordable houses, it is about building viable communities."
For more information contact the SDCLT on 01453 762271, visit the Social Enterprise Centre at 48c High Street, Stroud or email sdclt@secstroud.org
Those wishing to visit the site and hear its story should go along at 4pm on Thursday, April 14. There will also be a public event at the Cashes Green Youth and Social Centre to help promote the plans on Tuesday,
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