Plans for 38 homes on land near a steel fabrication plant have been granted permission after a meeting heard details of revised design features to prevent noise disturbance.

Members of North Yorkshire Council's Richmond area planning committee voted in favour of the proposals by Taylor Wimpey North Yorkshire for land at Northallerton Business Park, off Thurston Road, at a meeting on Thursday.

An application for a similar development on the site was rejected by Hambleton Council last December on several grounds, including that "noise mitigation measures would not be sufficient to reduce the noise impact to the proposed residential dwellings or to offer a suitable level of protection to the operation of Allerton Steel and the adjacent NHS building".

Planning officer Ian Nesbitt told Thursday's meeting: "A similar scheme was considered by Hambleton District Council in December and the application was refused. It was really around the acoustic fencing and bund, the kind of aesthetic impact members felt it had on the development and its immediate surroundings. There was also a health and safety concern around that bunding and its height."

Th 38 homes would include six one-bedroom properties, seven two-bedroom and 25 three-bedroom, while the site would be separated from the steel plant by a four-metre high bund with three metres of acoustic-rated fencing on top.

Mr Nesbit said in the new plans, environmental health officers believed there was enough noise mitigation included. In addition to the seven-metre bund and fence, the specification of the homes' windows, and the orientations of the properties, would help, he said.

"The elephant in the room is always going to be the noise issue and whether the mitigation measures proposed are enough to get over any noise concerns in relation to Allerton Steel in particular," said Mr Nesbit.

A spokesperson for the applicant told the meeting: "We have worked with your officers for nearly 11 months, we've sought to address the key concerns raised, specifically in relation to working with your environmental health team on the noise concerns that relate to Allerton Steel's continuing operation. One of the major things we've been working with is actually alongside Allerton Steel to make sure that their future operation isn't in any way impacted.

"The proposal for the noise mitigation, the noise bund is there for the protection of the existing and future residential development on the scheme but also to make sure that Allerton Steel have the free rein to continue to operate as they currently are. We've also worked with Allerton Steel to sell them a strip of land, next to the scheme. That, alongside this noise bund, is actually there to try and mitigate for and allow for Allerton Steel to continue their operation unfettered by the wider scheme of the development."

Councillors voted to grant the scheme subject to a number of conditions, including the completion of the bunding and acoustic fencing prior to occupation of any of the homes, and its maintenance throughout the lifetime of the development, and a noise mitigation scheme being submitted to, and approved by the council, before work starts.

Cllr Steve Watson said: "We know the chequered history of the development, with stops and starts, and also the complications of this particular site. It's fantastic to see that all parties have worked together to deliver something that meets everyone's needs. It's good that Allerton Steel are now not objecting because they have the confidence that this won't be an issue, we have in place a monitoring scheme when works are completed to ensure it delivers what we expected."

Cllr Heather Moorhouse added: "I am very confident this shouldn't have an impact on Allerton, that was my main concern. We've all heard about people moving near a train station or an airport and complaining – or even cows or ducks – I would hate to think there would be an impact on the business because of a bad decision. I would feel very confident to support the recommendation."