In its final years of operation, High Royds had become outdated and unsuited to modern psychiatric practice. As part of Leeds Mental Health’s £47 million reprovision process it was closed, with the wards being relocated to various community mental health units within the city of Leeds in the three years leading up to its closure. These include the Becklin Centre in St James’ Hospital and the Mount in the city centre. The hospital was closed in stages between 25 February 2003 and June of the same year.

As of 2011, the site was being redeveloped as a new village, also called High Royds, retaining some features of the hospital such as the ballroom and the clock tower.