Construction will now start this summer for Hungate Regeneration Ltd – a joint venture between Lend Lease and Evans Property Group.
The site is the only new residential development currently underway inside the city’s historic walls.
Richard Cook, Lend Lease’s Head of Residential, said: “We have been working closely with City of York Council during the planning process to incorporate the views of the public as well as York Archaeological Trust who have been leading the archaeological preservation of the site.
“These new homes have been designed by our architects Weedon Partnership to offer residents fantastic views both of the river, and of the historic city.
“The quality of the architecture means the homes feature a modern design whilst being sympathetic to the surrounding city.”