His decision brings to an end a nine-year battle by joint developers Bloor Homes and Hallam Land Management to build the homes in Shottery at Stratford-upon-Avon.
Plans for the homes, a primary school, a health centre were refused by the local council’s planning committee last year.
A public local inquiry began in April after developers appealed the decision.
David Joseph from Bloor Homes said: “We are delighted with today’s announcement and it brings to an end almost ten years of discussion and debate about the need for much-needed housing in the area around Stratford-on-Avon.”
“These plans for West Stratford accord with the Government’s drive to build new homes.”
Ruth McKeown of Hallam Land said: “It has been a long journey since 2003 and we now look forward to working closely with Stratford Council and the local communities to deliver these new homes.”