Shropshire Council's Cornovii housing firm has been granted permission to build the homes on land to the north of London Road in Shrewsbury, near Emstrey Crematorium.
The application includes 103 houses, and 32 self-build and custom-build homes. It will include 27 affordable homes, and an apartment block facing onto London Road.
Several residents objected to the application when it was put out to consultation, raising concerns over noise, loss of privacy and that the new homes may not be in-keeping with existing properties in the area.
However, the council's northern planning committee agreed to give the project the go-ahead.
Part of the site is set in what is considered 'open countryside' and part has previously been allocated for housing in the local plan. However, a report submitted with the application said the council has no concerns over the access to the site, with the road being part of the entrance to the Weir Hill development which is currently under construction.
The report states: "Insofar as Shropshire Council is concerned as the highway authority for London Road, the development raises no fundamental highway capacity or road safety issues.
"The development seeks to provide the principle means of access to the site via the newly built spine road that forms the link road between London Road and Preston Street as part of the delivery of the Weir Hill housing development, currently under construction by Taylor Wimpey and Persimmon Homes.
"The spine road junction onto London Road is shortly to be adopted and provides a high order junction arrangement and is considered adequate to serve both the Weir Hill development and the quantum of housing coming forward as part of this application scheme."
One resident who objected to the plans wrote: "We believe there will be substantial increase of noise once the development is completed, currently our closest neighbour is over 50 metres away, under the proposal our property will be directly surrounded by seven back gardens and an apartment block to the right, this will cause an unacceptable level of noise to our property.
"Under the proposal all privacy to each side of the house would be lost. Our property's electrical feed is currently from the overhead lines, there is nothing in the proposal how this is going to be dealt with, but again we have no wish to have the disruption created to resolve this problem.
"The proposed development is completely out of character to the existing properties and the area, the finished development will look like a mismatch of houses thrown onto a piece of land to fill a gap right next to a Crematorium and place of rest. This is one of the primary roads used to gain access to Shrewsbury and what people see first."