Harrogate Borough Council yesterday approved outline plans for the homes on a 23 hectare site on farming land just outside the town of Boroughbridge.
A planning report noted that the council has a 5.02 years land supply and, as such, the National Planning Policy Framework’s (NPPF) presumption in favour of sustainable development did not apply.
However, the report advised that the council’s housing supply position is "marginal and it will be important to take steps to maintain it".
In order to maintain the five year land supply position, "greenfield land outside the existing development limits will continue to be needed", the report said.
Planners advised that this means that existing development limits outlined in its core strategy "are considered out of date and can be given no more than limited weight".
Because of this, the presumption in favour of sustainable development was "once again engaged", the report said.
The report said that the site is allocated for development in its draft local plan for 397 homes. However, as this document is yet to be formally adopted, planners advised that this carried "limited weight".
Despite this, the report said that the draft allocation "reflects the requirement imposed by paragraph 59 of the NPPF to boost housing supply".
"The proposal would make a material contribution to the housing supply within the district, which is considered a significant social benefit of the development", the report said.
Recommending approval, the document added that the principle of development on the site was "acceptable and there are no highway or technical objections to the proposal".