A scheme to build 23 homes between Park Farm Cottages and Park Farm Villas on South Newsham Road has been given the go ahead by the Blyth Valley development control panel.
The council granted permission to Barry Elliot Property after receiving a re-submission of a planning application for 29 properties to be built.
It was considered that the original application, refused in November 2002, would result in additional traffic in the area leading to road safety issues, lead to an unacceptable loss of wildlife habitat and that the site should be classified as greenfield land.
It has since been established that the land is brownfield.
But the decision was overturned by the planning inspectorate after an appeal to the Office of the Deputy Prime Minister.
In a report to members, planning officers said: "From the evidence submitted the planning inspectorate could see no compelling planning objection to the development and allowed the appeal subject to appropriate planning conditions."
It said that in the appeal decision the planning inspectorate stated it was arguable as to whether the land is considered part of the natural surroundings but concluded that the plans would not have an unacceptable impact on wildlife.
"Any amenity use of the site would involve trespassing," it said. "He therefore considered that the nature conservation or amenity use does not outweigh its re-use for development purposes."
However objectors to the scheme are still called for Blyth Valley Council to reject the proposals.
They re-submitted concerns over traffic, flooding and inadequate draining, the impact on wildlife, noise during construction, impact on protected trees and lack of affordable housing.
Northumberland Wildlife Trust again lodged objections over the impact on South Newsham Nature Reserve and its habitats to the other side of the railway line to the east of the site.
The number of properties proposed have been reduced to safeguard the pond and fifteen Willow trees to the south of the site.
The properties will include six houses, six flats, nine bungalows and two bespoke houses and will have parking provision or internal garages.
The report said: "The development site does raise a number of complex issues.
However it is considered that residential development at this site would not have an unacceptable impact on wildlife habitats, does comply with local and national policies on housing and would not adversely affect highway safety and the free flow of traffic on South Newsham Road."
Conditions were attached to the planning permission to address concerns.