Proposals to sit off Coronation Drive and north of Seaton Lane have been backed by Hartlepool Borough Councilors.
Chris Little, the council’s director of resources and development, said the Coronation Drive plot had been identified for housing dating back to 2010 and was “a difficult site to redevelop”.
In 2021, a developer bidding for the land sought pre-application advice for a 150-home development on the site.
Former uses of the brownfield include a lumber yard, railway spur lines, a refuse dump, and the dumping of spoil from the former Seaton Carew Iron Works.
Councilor Shane Moore, the leader of the council, said: ‘Subject to planning it is clearing the contaminated land that surrounds all of these adjoining properties.
“It would solve this problem to remove this concern from residents.”
Plans for the site near Seaton Lane also include the release of a covenant on land to the rear of adjacent Sovereign Park, which would allow it to be used for housing.
Mr Little said Hansteen Property Investment came to the council after ‘many years of trying to market this land for industrial development without success’.
The proposed development, subject to completion of final details and planning approval, would span approximately 240 homes.
Council officials added that they will aim to ensure the area ‘is not saturated with new housing at the same time’ following the approval of 234 homes recently in Brenda Road.
Cllr Sue Little said: “I absolutely welcome this. The anti-social behavior on this earth with burning cars and people on quads, I hope we get rid of that.