Frosts Family LLP had appealed against the refusal by Milton Keynes Council of its plans for the homes along with open space and related infrastructure at the site at Woburn Sands.
Following an appeal, the application was recovered by the secretary of state as it could have had an impact on a neighbourhood plan.
A decision letter issued this week said that Greg Clark agreed with the inspector’s conclusion that the appeal be allowed.
It said that the appeal site was "located outside the designated area of the Woburn Sands Neighbourhood Plan (WSNP) and that the WSNP does not form part of the development plan for this appeal" and the scheme "would not undermine" policy within the neighbourhood plan.
The letter said that Clark did not consider that the council had demonstrated a five year supply of deliverable housing sites and, therefore, the National Planning Policy Framework’s presumption in favour of sustainable development should apply.
It said that Clark agreed that the contribution of the appeal development to meeting housing need in Milton Keynes, in circumstances where a five-year housing land supply cannot be demonstrated, was "a persuasive and important factor."
It said he also also shared the inspector’s view that other benefits included the scheme’s "use of previously developed land; the site’s sustainable location; the expected reduction in heavy lorry movements and the replacement of a semi industrial development in a rural area which has residential properties nearby".
The letter concluded: "Like the Inspector, the secretary of state concludes overall that the presumption in favour of sustainable development applies and that planning permission should be granted."