The Hall, which dates from the 16th century, is being revamped to provide accommodation for up to 39 residents in the village of Thornton-le-Dale, near Pickering.

The Grade II listed property, which also includes a pub and restaurant open to the public, has been bought by York Heritage, a new company launched by Park Lane Healthcare.

Work is already under way on the renovations and it is hoped that the project will be completed by the end of the year after the historic building was bought for an undisclosed seven-figure sum last month.

The Hall, which is currently home to 26 residents, will continue to operate as normal while the renovations are carried out.

The chairman of York-based Park Lane Healthcare, Christopher Mitchell, said: "We believe that people should be able to live in a care home environment which is as close as possible to their own homes.

"We are all aware of the growing demands which are being placed on society for the care of the elderly, and The Hall will be a key facility to help cope with these pressures."

The issue of care for the elderly is especially acute in North Yorkshire, which is a prime location for retirement.