The Planning Inspectorate has given the go-ahead to the Station Quarter scheme after Guildford Borough Council rejected the proposal in October 2016.
The project involves building 438 homes and delivering £25m in station improvements, including a new station building, new office space and an enhanced station environment featuring new retail and public realm.
The scheme is being developed by Solum in partnership with Network Rail and Kier.
In his decision, Planning Inspector David Morgan concluded that: "….this proposal offers tangible benefits to the built environment around Guildford Station. It also provides a significant amount of market housing and a lesser number of viability-calibrated affordable units, in addition to an enhanced station facility.
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"These are very significant social benefits. The proposals also bring forward a major development site with a mix of uses that will create employment opportunities for those seeking work. These are clear economic benefits to the borough
Alan Jones from developer Solum said: "We are very pleased that this exciting brownfield regeneration project has been given the green light. This is a scheme that will transform the area around Guildford Station and provide a new Gateway to the town."
David Biggs, Managing Director from Network Rail Property, added: "We at Network Rail are extremely pleased that the planning approval of this fantastic scheme has been achieved. It will deliver significant benefits to station users and the local community, by releasing land for much needed housing, attracting new businesses, creating jobs, and providing a significantly improved station."
However, Guildford Borough Council Leader Paul Spooner said the the decision is "extremely disappointing for our whole community".
"Alongside poor design and little gain for users of the station, it is a blow to our aims for more affordable housing in the town," he said.
"We agree with the Inspector's conclusion that this proposal has 'polarised opinion' and will cause some 'shock', especially as market housing appears to outweigh the critical need for affordable housing in our borough.
"Whatever the final result of the scheme, we will continue our work with Network Rail and other partners to provide the supporting infrastructure vital to our borough's future. Our aim remains to balance the needs of everyone who lives or works in Guildford and we will consider all options open to us regarding this depressing decision."
(LM/MH)
