The 150-house scheme off Middleton Road in Oswestry forms part of the Eastern Gateway sustainable urban extension (SUE), and comes after planning permission was granted for the first 600 homes earlier this year.
The latest plans have been approved three years after they were lodged with the council, due to lengthy discussions over highways concerns.
A new junction will be created off Middleton Road, and access will be provided through to the adjacent development.
A report by planning officer Philip Mullineux says: “Public highway access and impacts on surrounding trunk road highway infrastructure created a considerable delay in the processing of this application, as it was clear further negotiation on this matter was required by the parties concerned.
“Highways England along with Shropshire Council Highways eventually raised no objections in relation to the proposal subject to conditions being attached to any approval notice issued.”
Now the outline application has been approved, the developers will submit a reserved matters application detailing the proposed layout and design of the scheme and the size and appearance of the houses.
The report says the development will bring a number of benefits to the town, including 15 much-needed affordable homes, recreational areas, footpaths and cycle routes.
The developer will also make a financial contribution towards increasing capacity at the nearest schools. The amount be determined at the reserved matters stage.
Oswestry Town Council and Oswestry Rural Parish Council supported the application, though there were 10 letters of objection received from members of the public.
They raised concerns around privacy and impact on residents of existing properties, traffic and a lack of local infrastructure.
The report concludes: “It is considered that development as proposed offers in principle a range of dwellings and public open space along with public highway and transportation that complies with the adopted master plan.”