Milton Keynes Council planning officers have given developers the green light to build 40 new two bedroom apartments in Fenny Stratford.
The work will involve the demolition of 18 Simpson Road, close to Fenny Stratford Railway Station, and the erection of two apartment buildings containing a total of 40 flats.
The site is bounded by the Grand Union Canal to the east, the Marston Vale railway line to the north and other commercial sites to the south and west.
At present, the site is mainly used for open air storage by New City Heating who occupy a warehouse building to the immediate south of the site.
It also contains an area of managed scrubland adjacent to the canal and the curtilage of three terraced properties that are in the same ownership as New City Heating.
72 parking spaces will be provided in an undercover area to sit below the flats.
Bletchley and Fenny Stratford Town Council also indicated their support for the plans, with no comments received by local Bletchley East ward councillors.
The decision was made by planning officials last Wednesday.