Linden Homes secured the outline consent from East Cambridgeshire District Council subject to the signing of an S106 agreement, which will include contributions of around £2.9 million for improvements to local facilities and infrastructure.
As part of the planning agreement for the development, funding will be provided for local education and highways, as well as an upgrade to the existing multi-use games area in the village.
The agreement also includes the provision of land for a burial ground as well as community facilities, including sports pitches and a new village green.
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The 173 homes will form the second phase of the Laithwaite Gardens development off Mepal Road, where Linden Homes, part of Vistry Group, has now completed the first phase of 77 properties.
Georgina McCrae, planning manager at Vistry East Midlands, said: "It is excellent news for the area that outline planning permission has been granted for phase two at Laithwaite Gardens. As well as providing an additional 173 new homes, we are committed to delivering a major investment to improve facilities and services for the local community.
"We are now preparing to submit our detailed plans for the 38-acre site, and subject to approval, we hope to start construction work on the first homes by summer 2022."
Initial plans for phase two indicate that 112 homes will be for private sale, while 52 homes – 30 per cent of the site - will be delivered as affordable housing. A further nine plots will be allocated for self-build homes.
