Housing association Cross Keys Homes has received planning permission for 96 properties off Newark Road following funding from the Cambridgeshire and Peterborough Combined Authority - the county’s mayoral body.
The site was previously home to Perkins Sports Association before Cross Keys acquired the land from the engineering firm approximately seven years ago.
The area has also been used as an unauthorised tip.
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Works on 104 affordable homes on neighbouring land were completed in July last year, and the intention is for the entire development to be managed by Cross Keys.
A planning application submitted to Peterborough City Council said the development will help screen the Perkins factory and Sainsbury’s from Newark Road.
Under the proposals, there will be 70 houses and 26 flats in two and three storey blocks with a new access road off Newark Road.
Of those properties, 38 will be for rent and 58 for shared ownership.
The flats will be a mixture of one, two and three bedroom dwellings, while the houses will be a combination of two, three and four bedroom properties.
Two of the three bedroom houses will be wheelchair accessible bungalows.
All houses will come with two parking spaces, while there will be one parking space for the one bedroom flats and two for the two bedroom flats, in addition to 18 visitor spaces.
Cycle storage will also be provided.
Plans had previously been submitted to develop the land for a new school to cater for children with special educational needs, however, these were later withdrawn.