The properties will be built on Station Approach in the village with a new access off Ermine Street, and will also involve conversion of a former railway goods shed into the flats. The site is owned and used as a depot by AC Williams fleet of coaches.
The scheme has been prompted by a chance for AC Williams to relocate to a more strategically located site, with no loss of employment, according to GHP Trading, owner of AC Williams.
Glenn Pratt, chairman of the firm said in his planning application: "In 2012, GHP Trading secured the future of both the company and all its employees when GHP bought AC Williams out of administration. Since then, GHP has invested heavily in newer vehicles and the employees allowing AC Williams to not just survive, but to expand and thrive.
"The old bus depot in Ancaster now constrains the expansion of AC Williams, which itself provides valuable transport services to schools and the local community mainly in and around Grantham and Sleaford.
"Relocating to premises a few miles away will provide a platform for the next stage of the company's strategic development and 100 per cent of the jobs within the business are absolutely guaranteed as a result of the move. Moving operations away from the village of Ancaster will provide the platform and the resources to allow the business to keep investing and to expand further."
Close to Ancaster railway station, the new homes would include detached, semi-detached and terraced houses. The detached and semi-detached homes will have their own gardens while the flats and terraced houses will share communal parking.
There has been no opposition from Ancaster Parish Council and four of the homes will affordable for rent and two as starter homes.
The parish council said: "Whilst sad at the loss of A.C. Williams Coaches from Ancaster, we welcome this brown field development that will benefit the frontage onto Station Approach. It is nice to see one of the old buildings retained in the development."
They were approved at a planning meeting on Thursday at South Kesteven District Council.
Among planning conditions imposed on the developer, they must pay £50,974 towards secondary school education, £19,800 towards GP healthcare provision and £16,768 for play equipment in the village.