Tameside Metropolitan Borough Council in Greater Manchester has approved plans for the first phase at Base's redevelopment of a 1960s council estate in Hattersley.
The £100m first phase involves the construction of 173 properties by Base, the joint venture between Barratt Homes and Artisan Property Group, Carol Ainscow's Manchester-based developer.
Peak Valley Housing Association, a subsidiary of the Contour Housing Group, and national regeneration agency English Partnerships are also involved.
A range of housing from one to four bedrooms and one and two-bedroom apartments is proposed by Base. Construction of phase one is due to start this autumn and will take approximately three-and-a-half years to complete. Planning applications for further phases of the scheme are due to be submitted shortly.
In total, there are some 27 sites for development in Hattersley. The £250m vision involves not only the provision of the new homes but also the delivery of new public areas and shopping, community and commercial facilities, including improved roads, parking and public space.
In addition to the new housing, the project will also generate funds for Peak Valley Housing Association to support a £40m programme of improvements to existing properties on the estate.
Jason Millett, Base director and deputy chief executive of Artisan Property Group, said: "Hattersley will set standards for future residential development and in particular attract a broad and mixed community to settle on a long-term basis even if their housing needs should change."