44 much-needed homes are set to be built near The Marlowes Shopping Centre in Hemel Hempstead.
Hightown Housing has been given permission to transform TopCar service centre into one and two-bedroom apartments.
The new properties will be for people on the Dacorum Borough Council’s housing waiting list.
Andrew Royall, development director for Hightown Housing Association, said: “This is fantastic news for local people struggling to pat private rents.
“Affordable housing is much needed and these homes are in a great location, close to the town centre.”
“Since 2009, Hightown has built over 700 homes in Hemel Hempstead and we’re hoping to build 370 more homes in the next five years.”
The new homes will play a part in the regeneration of Paradise Industrial Estate into a mixed use and residential area, as identified in the Dacorum Borough Council Local Plan.
Construction at Paradise Industrial Estate, near Marlowes, is due to start in the Summer 2019 and finish by early 2021.
Lib Dem Cllr Ron Tindall, of Adeyfield West, said: “We need more social housing and therefore I see the development as a positive; at least it is not on a greenbelt.
“I want the council to open up to housing developments.”
According to the National Housing Federation’s Home Truths report, average house prices in Dacorum are £429,118 – over 12 times more than the average annual salary in the area (£34,372).
Another of Hightown’s developments, in Peregrine Close, 87 apartments are being built on the site of the demolished Viking House offices.
The project which began in December 2016 is set to be finished in December of next year.
The scheme, which stands on the site of the disused offices known as Viking House, will see 87 one and two bedroom apartments built across four blocks. 40 of these homes will be available for intermediate rent while the remaining 47 will be let via Dacorum Borough Council’s Choice Based Lettings system.