It had been argued the original proposal for homes at Whitehill would have an impact on the setting of the local church, All Saints.
But a revised and improved scheme has now been given the go-ahead by council planners.
Work is expected to start later this year.
Schizophrenic knifeman given indefinite hospital order
Judge says prison would be "worst place" for him
Paignton Post Office petition goes to parliament
It's one of four at risk in Devon
Fun park shuts two months after opening
It was once a fairground museum
Work begins on project to rebuild fire-hit Exeter landmark
'This building will be built by us, but it belongs to Exeter'
Car crashes through wall near Exeter Cathedral
One casualty was being treated at the scene
Plymouth community group scoops national award
Project supported by D&C police
