Houses on a proposed estate in Oswestry can be sold only when improvements to a congested roundabout are completed.
Highways England has given its support for outline plans to build up to 150 homes off Middleton Road which were submitted in December last year.
But it has stipulated a series of conditions for applicants Jennings Estates Ltd.
These include the widening of the A483 northbound approach to the the Mile End roundabout, which has been a contentious issue for the Government body.
Priya Sansoy, assistant asset manager for Highways England, confirmed it had also been working with Shropshire Council to explore funding opportunities for a more "substantial" improvement to the junction.
She said: "Should external funding opportunities come forward, it would potentially require match funding from local planned developments including the scheme here under consideration.
"Such funding may, or may not, become available during the lifetime of any planning permission that may be granted to this application. As such, Highways England has sought to recommend an approach to planning conditions that will allow either eventuality to be easily adopted as may be appropriate at the time the applicant comes to discharge planning conditions."
The junction has come under fire since £4 million was spent in 2014 on improvements and the creation of an entrance and exit for the proposed Oswestry Business Park.
However, in recent weeks the roundabout has required further work.
The other conditions for the Middleton Road scheme state the applicants must complete a construction management plan before work on the development begins.
They must also detail the environmental and boundary implications of development on the A5 before reserved matters are approved.
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