Boston Borough Council has granted the Longhurst Group planning permission to build the homes on the former Magnadata site off Norfolk Street.
The new development will see the regeneration of the vacant site and all the homes will be available for either shared ownership or affordable rent.
Marcus Keys, Executive Director of Growth and Development, said he was delighted to have secured planning permission for the development.
He added: “There’s a recognised need for affordable housing of this kind within Boston and the surrounding area and our Improving Lives strategy commits us to delivering the homes people need, where they’re needed most.
“By redeveloping this brownfield site, we’ll be doing just that and giving local people the opportunity to get onto the housing ladder in an affordable way.
“We’ve identified the housing need in the area, which is why this development will be made up of shared ownership and affordable rent properties.
“We’re confident that this development will be a welcome addition to this part of the town and we’re delighted to have been given the go-ahead to deliver it.
“I’d like to thank the officials from Boston Borough Council with whom we’ve worked closely to ensure this project meets local need and I’m now eager to see work commence to bring these plans to fruition and I’m looking forward to watching the progress on site.”
Cllr Martin Griggs, Portfolio Holder for Housing and Communities at Boston Borough Council, said: “Redeveloping this type of land provides a great opportunity for many residents of Boston, helping many set-up their first home or to give them a hand onto that property ladder they’ve been longing for.
“We’re pleased to be supporting Longhurst Group to assist them in transforming a site which might otherwise have been left derelict for many more years. Instead, they will be building new affordable rented and shared ownership homes for 40 families to reside in at a price they can afford.”
The main contractors for the development will be D Brown Building Contractors and Adam Mayer, Commercial Director for the company, said: “We’re delighted to be working in partnership with Longhurst Group on the eagerly awaited transformation of this site into much-needed affordable family homes.
“We’re a local construction company with a proven track record of delivering similar schemes throughout Boston and are looking forward to continuing the great relationships we’ve got with the local supply chains to further support the local economy.”
The development site was previously home to Magnadata, the first company to produce magnetic strip tickets for British Rail.