The land, located south of Murton Lane, was previously home to the Forest Estate housing development, which was demolished in the early 2000s.
Sunderland City Council granted planning permission for the development on 11 October, following the completion of a Section 106 agreement. Construction is set to begin in November, and the new development will be named Elemore.
The site will be accessed from Murton Lane to the north and Cedar Crescent to the south. The development will feature a mix of energy-efficient homes, including 21 two-bedroom, 58 three-bedroom, and 56 four-bedroom houses. These properties will come equipped with solar panels and electric vehicle charging points, reflecting a focus on sustainability.
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Miles Crossley, Land Director for Bellway North East, said: "There is a recognised need for new-build housing in this part of the North East, so our new development in Easington Lane will help meet this demand, as well as brining significant economic, social and environmental benefits for the local area.
"Our plans will see us regenerate a disused brownfield site and transform it into a sustainable new neighbourhood featuring a mix of two, three and four-bedroom homes, which will appeal to wide range of buyers and help create a vibrant and diverse new community.
"Low-carbon technologies such as solar panels will help lessen the impact each home has on the environment and reduce household energy bills.
"This site is in a prime location just four miles from the shops, pubs and other amenities in the town centre of Houghton le Spring and only five miles from the coast. The area has good transport links with the A19, which is a 10-minute drive away, providing access to the wider region, and Seaham railway station, five miles away, offering services to Whitby and Hexham.
"The development, which will feature a network of footpaths and cycleways, a pond area and a village green, will create a subtle, sensitive and well-considered continuation of the village."
