Westmorland and Furness Council’s cabinet has agreed to finalise an agreement for £9.95 million for Windermere Gateway to develop its roads.
Cabinet members also agreed to commit £2.5m of Affordable Housing funding towards the scheme at Orrest Head Farm to deliver a level of affordable homes that would not otherwise be possible.
It said the scheme had viability challenges without the cash injection.
Windermere Gateway would see around 242 new homes built in the Lake District town – which could not be used as second homes or holiday lets. Within the development, 133 houses have been designated as affordable.
Planning permission for work on the roads – which will open up the land earmarked for development – was granted by the Lake District National Park in November.
The site is allocated in the Lake District National Parks (LDNPA) Local Plan for housing and employment.
The project is a partnership between the landowner National Trust, the Lake District National Park Authority, Westmorland and Furness Council and housing developer Urban Splash.
The partners say its long-term vision is to unlock opportunities for a mix of new, much-needed homes, jobs, sustainable transport connections and a much-improved welcome.
The land is owned by the National Trust, which selected Urban Splash as their development partner for the site through a competitive procurement process.
Urban Splash would work with a registered social housing provider to bring forward the affordable homes, while details of housing numbers, mix, type and tenure are all still subject to further development.
An outline planning application for the housing development is due to be submitted by Urban Splash later this year. If the planning application for the housing development is not granted, then the Homes England funded highways work will not go ahead.
