Councillors approved 89 new homes at Freshney Green in Grimsby as part of a major redevelopment of the area.
The proposals submitted by Lincolnshire Housing Partnership will see the development built at land at Conway Avenue, including Sorrel Road and Larch Crescent.
It will complete the regeneration of the notorious Yarborough Estate which was demolished 12 years ago after being dubbed a “blight on the town”.
The final plan includes 38 semi-detached two-storey houses and 51 terraced houses, which will sit alongside the already built 322 homes and a £14 million Freshney Medical Centre.
Developers said the site will “complete the redevelopment of the whole area” and that sales of homes in the area will help to fund social housing elsewhere.
Meanwhile, council officers said in a report plan will help to build “much needed” housing.
It said: “The development would provide much-needed housing on a site within a much larger residential area and which is close to community facilities and public transport networks.”
Councillor Matthew Patrick described the scheme as the modern housing estate.
“I think it’s absolutely excellent,” he said.
“It’s the final piece in the puzzle and it’s the modern example of how to deliver a housing estate.”
Chair of the planning committee, Councillor Stephen Harness, said he was looking forward to the development being completed.
“I personally think it is an exciting scheme,” he said.
“I am pleased that it is going to come to fruition.”
The redevelopment of Freshney Green, started in 2007, stands on land where housing for the former Yarborough Estate once stood and has been built over seven phases.
The original plans consisted of 410 homes, including 164 houses classed as “affordable”. Of those, 322 have been built according to developers.
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