County Durham Council had been unable to reach a decision over the plans - lodged by Bellway and County Durham Land LLP - which had been heard at a public inquiry earlier this year.
These plans have since been approved by the secretary of state meaning Bellway can start work building 368 new homes on the land to the north east of Sniperley Farm.
The housebuilder can also convert four farm buildings into home, with outline consent granted to extend Sniperley Park and Ride.
Outline approval has also been granted to County Durham Land for a further 1,550 homes, a local centre, public house and primary school on the wider site.
Out of the first phase, 92 properties will be designated for affordable housing with 25% set aside across the overall development.
The developers will also invest £5m into the local area, targeting transport infrastructure, education facilities and a new healthcare unit.
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“This decision will pave the way for the construction of hundreds of new energy-efficient homes which will help meet the significant need for new housing in Durham,” said Miles Crossley, land director for Bellway North East.
“Our development, which will be known as DH1, will be a sustainable and desirable place to live, with carefully designed homes set within tree-lined avenues and wide-open natural green spaces and play areas on the doorstep.”
The development will include homes ranging from one-bedroom apartments to five-bedroom detached houses. Work will commence later this year, with the first homes expected to be available by Autumn of 2025.
The Labour government have made housing a key part of their agenda, with the goal of delivering 1.5 million houses over the next five years.
As well as reforming the UK’s planning frameworks, chancellor Rachel Reeves said stalled applications would benefit from active involvement of both her office and that of deputy prime minister Angela Rayner.



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