Woking Borough Council has granted planning permission for an £80m housing scheme by Evolution, a consortium between Kier Project Investment and Thames Valley Housing.
The 9.5 hectare site near Moor Lane, Woking, will be developed to create 371 new homes. Of these, 224 will be available as affordable social rented housing and the remaining 147 homes will be for private sale. Kier will construct the properties and Thames Valley Housing will manage and maintain the social housing over the 25-year contract.
Cllr David Bittleston, Woking Borough Portfolio Holder for Housing said: "We are delighted that the development has had the go-ahead. The Council is committed to supporting the Governments' growth agenda and this development will provide much-needed affordable houses for local people and a major boost for employment in the local area."
Construction work is expected to commence during the summer.
Nigel Turner, managing director of Kier Property, said: "We look forward to working with Thames Valley Housing to progress the development. The mixed tenure scheme will play an important part in addressing the area's housing shortage."