The eco-friendly dwellings - many of them three-bedroom properties with gardens aimed at families - will be heated by air source pumps and be built on a greenfield site off Station Road that has been allocated for housing under the Local Plan
Under legal requirements of development consent, 'local connection criteria' will be used to determine sales and tenancies and a threshold of affordable properties was set.
The development will be a mix of detached, semi-detached, terraced and bungalow units, with some managed by Broadacres and South Lakes housing associations.
Member champion for development management Jim Munday said: “We have agreed with local people and partner organisations that we should be supporting the completion of 400 dwellings between 2018 and 2024. Meeting this target is proving challenging for a variety of reasons, but large schemes such as the one approved today for Sedbergh will make a big contribution.
"The Yorkshire Dales is a popular place with high house prices. We need to ensure there is a supply of affordable housing for people who want to live and work here, so a further 34 rented and shared ownership homes for people with local connections is most welcome.”
The committee met in person for the first time since the pandemic began to approve the plans at Grassington Town Hall. Ten meetings since March 2020 have taken place online.