Developer William Davis Ltd lodged an appeal last year after Charnwood Borough Council failed to determine its application within the prescribed period.
Pickles said in his decision letter that he agreed with a planning inspector's conclusions that the local plan for the area was out of date because the Council could not demonstrate a five year housing land supply.
Pickles said he agreed that, although the proposals represented "limited conflict" with the local plan through its effect on the purpose and integrity of the plan's 'Area of Local Separation', this harm would be "limited and insufficient to undermine its continuing planning function".
He concluded that the other benefits of the proposals, including its contribution to the Council's housing supply, meant that the scheme represented a "suitable and sustainable development where other material considerations clearly outweigh the limited development plan conflict".
Earlier this month, a planning inspector wrote to the Council and recommended that the examination of its draft core strategy should be suspended to allow the Council to reassess and update its housing needs figures.
