A £5m development of more than 50 family homes could be built in Preston.
Plans have been submitted for a scheme of affordable houses off New Hall Lane, on the site of a former mill.
And a local councillor has welcomed the plans, and said it was “great” to see the encouragement of families back to the area.
Mulbury Homes and Adactus Housing want to build 51 energy efficient homes and redevelop the land near the Tetrad site.
Coun Albert Richardson said: “There is a shortage of affordable homes for ordinary people in Preston, and if this is going to help then that’s great.
“It’s great to see them bringing families into the inner urban area.”
Coun Richardson said he was pleased with the homes proposals, “providing they are affordable for everybody”.
He said: “Rather than start on new land, they must put houses on redundant sites. That’s what we want.
“Otherwise, we who represent inner urban areas would be left with lots of empty sites. So what we want is to get the people back in these places and make the houses better than the ones that were knocked down.”
If approved by Preston Council’s planning committee, Mulbury Homes will deliver the scheme on behalf of Adactus Housing Association, who will make the homes available for shared ownership and rent for local families.
Adactus has secured grant funding from the Homes and Communities Agency (HCA) for the development.
Greg Mulligan, a director of Mulbury Homes, said: “These modern properties will provide much-needed new family housing while at the same time helping to regenerate the local area by revitalising a derelict piece of land.
“We will continue to consult closely with the community and other local stakeholders to bring this valuable development to fruition.”
Garnet Fazackerley, assistant director of development at Adactus added: “We are delighted to be working with Mulbury Homes and the HCA on this development.
“By providing good quality affordable homes, we aim to make a huge contribution to the regeneration of this area of Preston.”
The development of a mix of two, three and four-bedroomed houses is part of a masterplan for the wider area which could see further residential housing built in the future. If approved, work could start on site in June with an anticipated completion date of October 2015.