The authority rejected HSL’s planning application because the project would have meant a loss of open green space.
More than 1,600 people signed a petition to save the land from development.
The planning inspectorate, which held a six-day inquiry last year, said building on the 1912-founded golf course would have “several benefits”.
Half the homes in the scheme are set to be designated as affordable housing, and the developer has also promised to give money to local sports facilities and green spaces.
The clubhouse would be converted into a “community hub” under the plans, which also include 26 acres of space that can be used by the public.
HSL director Paul O’Shea said: “The positive decision now presents a real opportunity to create a thriving, balanced neighbourhood incorporating a range of community facilities for local people.”
