Keepmoat Homes has bought the site from private landowners for an undisclosed sum with planning permission for 470 new houses.
The new estate, named Salkeld Meadows, will have a mix of one, two, three and four bedroom detached and semi-detached homes, along with two bedroom bungalows. Open spaces will include a play area and two sports pitches.
Work at the development is expected to begin in January 2022 and will take 10 years to complete.
Keepmoat Homes regional managing director Daniel Crew said: “We are really excited to transform the site, which is in a prominent location by the sea, into a new neighbourhood.
I am very familiar with the area as I spent many childhood summers with my grandparents just across the road from the site, and I know it will be a desirable place to live.”
Meanwhile, 15 miles up the coast, more house-building is also set to start in Middle Deepdale, near Scarborough. Kebbell has been given planning approval for a further 107 homes at its Cornelian development.