The project will be built on land at Carrick Terrace and Hawthornhill Road, which will be transferred to Cube Housing Association as part of the council’s strategic partnership with its parent company Wheatley Group.

The land on Carrick Terrace has been lying empty since 2013 when 48 unpopular properties were demolished.

A further 10 properties, which are above a row of shops on Hawthornhill Road, have been empty for two years and will now be flattened to make way for the new housing.

Only one of the commercial units is still in use and as part of the deal it is proposed that the same local shopkeeper continues to operate in a new shop within the development.

Councillor David McBride, convener of housing, said: “This decision is another major milestone for the regeneration of Castlehill and I’m delighted that the whole area will undergo such a major transformation. The homes which were previously on this site were not the right size or type to meet the demand in the area. We are committed to providing quality housing throughout West Dunbartonshire, which is exactly what will be delivered once this project is completed.”

Councillor Lawrence O’Neill, vice-convener of housing, said: “The community has made it clear that they support these plans, and it is exciting that we are now moving forward with this development. This Council always aims to improve the wellbeing of communities and by creating new homes at the heart of Castlehill, whilst retaining the local shopkeeper, it will help foster a fantastic community spirit in the area.”

It is expected that the existing properties will be demolished by Cube early next year and the shopkeeper will be provided with a temporary shop until the new development is completed.

The strategic partnership between Cube, which is part of Wheatley Group, and the council was agreed last year and will deliver 300 new social rented homes across the area.

Cube chair Liz Ruine said: “We’re delighted plans for Carrick Terrace have been given the go ahead. By working closely with our partners, we can breathe new life into the community and create energy-efficient, family-friendly properties people are proud to call home.”

Work on the homes in Carrick Terrace is expected to start in Spring 2016.

The strategic partnership between West Dunbartonshire Council, Cube and Wheatley Group has already seen 33 homes built at ‘The Scholars’ in Clydebank and 54 flats at Beardmore Place in Dalmuir.

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