A development of 87 homes – to be named after father of the railways George Stephenson – has been approved by council planners.

The homes will be built on land east of Mandale Park, Urlay Nook Road, Eaglescliffe, next to the headquarters of developer Mandale Homes. The new estate will be named Stephenson Mews, with the inventor’s Locomotion No.1 to be featured in its logo.

Work on the two, three, and four-bedroom semi-detached and detached homes will start in the new year, with show homes to be unveiled in the summer. Stockton Council granted planning permission for the scheme earlier this month.

The 31 conditions attached to planning consent include creating a public artwork about the 1825 Darlington to Stockton Railway. The developer proposed this could be signage recognising the nearby original line of the historic Stockton to Darlington railway line, as the railway’s bicentenary celebrations approach.

Mandale Homes proposed 87 homes, including 17 affordable homes, for the site. It contended “many residents would prefer a residential development” to industrial units which were given outline permission in 2015.

Two residents who commented on the plans said as much to the council, one saying: “Having new houses built is preferable to any business, commercial units, particularly the large, almost aircraft hangar types on previously approved plans which I assume were approved years ago and could now be so unsuitable right next to dwelling houses.”

The other resident said, however: “I would also like to add does this area need anymore housing given that up to 1000 are already in progress in Eaglescliffe along with all the new housing along Darlington Back Lane.”

Planning officers noted the preference for homes, saying in their report: “It is considered that this would weigh in favour of the proposals in that residential development would be a more compatible neighbour with the adjacent residential estate to the east.”

Council highways managers said the development, with an estimated population of 261 residents, would cause a “negligible” increase in traffic in an area with one recorded accident. Officers said the developer should contribute almost £330,000 to open space and facilities off-site, while the NHS proposed the developer make a £42,000 contribution to support health services for an estimated extra 200 patients.

The Friends of Stockton and Darlington Railway were “disappointed” with a lack of trees on the northern site boundary, and suggested a landscaping condition. Tees Archaeology put forward a condition to protect probable Iron Age/Romano-British settlement remains in a nearby trench.

Environmental health officers and Natural England had no objections as long as conditions or measures to avoid harmful effects were added to the planning approval. Northumbrian Water also suggested conditions while Network Rail set out requirements which it said “must be met”.

The planning report said the site was sustainable and suitable for residential development. It adds: “The development is laid out to make best use of the land and to protect future occupiers from noise and disturbance from adjacent users.

“Overall, it is considered that the scheme is broadly acceptable subject to conditions to secure the final details… It is considered the scheme is acceptable from a highway and pedestrian safety aspect.”

Mandale Homes’ sales director Helen Woods said: “We are delighted to see this new development coming to fruition. We’re eager to begin work in the new year and are excited to deliver much-needed family homes to the area. We anticipate high demand once these homes are launched onto the market.”

The developer’s HQ next to the development has also just won an award for the best office interior in the UK. It scooped the UK Property Awards accolade for its “state-of-the-art” facilities including a gym, bar and rooftop space.