St Modwen has received outline planning permission for the construction of 650 homes on the site of the Ford car factory site in South Ockendon, Essex.
The scheme was given consent by the Thurrock Thames Gateway Development Corporation.
The plans include new apartments, three and four bedroom family homes, landscaping, and public space.
St Modwen bought the 12.5-hectare site from Ford in 2006.
The house builder's planning manager Colin Darby said: "Our proposals for South Ockendon will give this former industrial site a new lease of life.
"St Modwen is an expert in bringing sites like these back into community use; the Arisdale Avenue site is a key regeneration opportunity in the Thames Gateway and it will be a great development."
The scheme is scheduled to be completed by 2014.