This Hospital was similar in its charitable objects to St Cross. Founded in 1180 by Bishop Toclyve (1173-88) for the reception of nine lepers, it stood in the downs along the Alresford Road, by the first milestone. The site was excavated by the TV Archaeological programme ‘Time Team’. During a chequered history the Hospital lost much of its property and funds, and was at times used as a barracks and a prison. Considerable damage was caused to the structure by neglect and misuse. In 1788 this fine example of Transitional architecture was pulled down. Parts of the building were used in the construction of St Peters Church in St Peter’s Street, most notably a fine early Norman gateway, and some in the construction of six alms houses in Water Lane. These were occupied by four men and four women, who each received a pension of two shillings a week. Sometime in the 1920´s they were converted into two dwellings, and were eventually sold into private ownership in the late 60´s, after they had become somewhat dilapidated. Some ancient burials were disturbed during the excavation for their construction. A Roman sepulchre was discovered on the site of the lower cottages. (The whole area is the site of an ancient cemetery). The builders reburied some parts of the disturbed burials, only to have them rediscovered in 1993 during the construction of a new retaining wall. The site was occupied during Medieval times, as a Medieval rubbish pit was found under the rear garden boundary wall.
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