The District of Blaby will be boosted by at least 32 affordable houses following the sale of the old depot in Littlethorpe.
A £1.125 million deal for the site on Warwick Road, Littlethorpe has been agreed with emh group and approved by Councillors.
The deal will see emh group undertake work including decontamination of the site and the removal underground tanks, before turning it into housing.
Once completed, 32 affordable properties are expected to be built on the site, including much-needed bungalows, two bed and three bed properties.
Work has been undertaken since the site became vacant to ensure that the Council received the best deal possible, and that any development on the site was in the best interests of residents.
Councillor Terry Richardson, Leader of Blaby District Council, said: “This is an excellent result for the council even taking into consideration the costs associated with ensuring that full de-contamination of the site is undertaken.
“Affordable housing is in high demand across the country, and we are glad to be able to continue supporting local people by enabling the building of affordable properties in existing and sustainable communities.
“We are delighted to continue our long-standing partnership with EMH, and the money from this sale will be used wisely across other Council projects going forward.”
Chan Kataria, Chief Executive of emh group, said: “This deal demonstrates the strength of our partnership with Blaby District Council, which has gone from strength to strength since the stock transfer in 2008.”
Any development of the site will need to be granted full planning permission before it can begin.