Land owned by Harborough District Council, which has been earmarked for more than 70 new homes, has been sold for £4.9million.
The capital raised from the sale will be invested directly into future projects in the Harborough district.
After considering options for the land, Harborough District Council agreed that the former allotment site at De Verdon Road in Lutterworth should be sold.
The Council said it has had to refocus its priorities in the wake of the Covid-19 pandemic and agreed not to pursue the proposed housing project itself.
Councillors agreed that the land would be sold on the open market after planning consent for the housing development was granted.
Cllr James Hallam, Harborough District Council’s Deputy Leader and Cabinet lead on strategic asset management, said: “With the significant impact of the Covid pandemic, a decision was taken to sell this land on behalf of the taxpayer.
“We will carefully evaluate how we can utilise this capital receipt to benefit the Harborough district, including the Lutterworth locality.”
Local commercial property agents, Fisher German, were instructed to sell the land on behalf of Harborough District Council.