Shropshire Council has approved plans to build nine homes on the old Whittle Bus depot site in Ludlow.
The smaller-scale scheme replaces a rejected proposal for 18 houses, which councillors criticised for poor design and limited space.
Officials say the new plan will enhance the area, reduce traffic, and remove outdated buildings, with detailed designs to follow.
Person found dead on railway track
Strike at Abergavenny King Henry School parents react
Teachers strike continues at Abergavenny school
Eight-figure sum quoted to fix Ledbury station access
Relief road pledge could put five proposed rail stations at risk