Homes England is exploring plans for a further 800 homes at its Lea Castle scheme in Kidderminster.
The government’s housebuilding agency secured consent for 600 homes at the former Lea Castle Hospital site last year.
It sold the land to Vistry Partnerships, working with housing association Citizen to deliver the £137m scheme as part of a wider partnership. The pair have completed demolition and commenced an eight-year build last October.