They are planned for a 900sq m grassed area currently used to store caravans on the east side of Mill Lane, between Whitburn and Marsden.
The land adjoins Coast Road Garage – built as Derek Wilson Garage in 1946 – an MOT and service centre which may also be rebuilt and modernised.
South Tyneside planning chiefs this week gave the go-ahead for the construction of the homes, which will back onto the existing Shearwater estate.
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It is the latest recent housing scheme along the A183 Mill Lane, which becomes the Coast Road to the north and Whitburn Bents Road to the south.
Opposite the planned construction site lie new properties on land formerly occupied by the Shorts of Whitburn lawnmower firm.
And the ex-rifle range, half a mile south at Whitburn, has also undergone significant house building.
Daniel Wilson, grandson of the garage’s founder, who submitted the planning application, said: “This is a nice area for new homes.
“A number of people had made offers for the land, and in the end, we realised we could build the houses ourselves.
“The garage itself is a family business, which is well known and doing very well – it has existed for a long time.
“We have not submitted a planning application yet, but we hope to be able to redevelop the garage to make it more modern, some time after the houses are built.”
To get the green light, a study was carried out to ensure the new builds would not block sunlight from reaching one of 12 Shearwater householders consulted about the project.
The properties will consist of a ground floor entrance hall leading to a garage and utility with access to a rear level decked patio.