The unused plot, next to a children's play area off Hampshire Road, Walton-le-Dale, has stood empty since hundreds of homes were built around it more than 20 years ago.
Original plans for the huge Holland House estate reserved the site for a new 150 pupil school, but it was never built.
Now Eccleston Homes have put in a planning application to erect 48 homes on the site which was once owned by Redrow Homes.
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Redrow built the Holland House development but, after being transferred to Lancashire County Council for a school to serve the hundreds of homes, the project was dropped by County Hall and a new school was eventually built elsewhere.
The land was transferred back to Redrow, who had an application for 48 houses accepted in 2014. But because of conditions attached to the project it wasn't built.
Eccleston Homes have subsequently taken it over and are asking for permission to build a mix of two, three and four bedroom houses - 14 of them affordable homes on what they call a "degraded site in an established residential area."
"Our vision for the redevelopment of the site is to create place for people which can improve their quality of life," say Eccleston in documents submitted to South Ribble Council.
"Redevelopment of the site for residential use presents an opportunity to significantly improve the quality of the streetscape along Hampshire Road. The unmaintained land has a significant negative impact on the local landscape.
"The proposed development presents an opportunity to introduce trees and soft landscape elements alongside the site's frontage with Hampshire Road, significantly improving the visual appeal of the street."
The proposed development will comprise seven two-bed mews houses, seven three-bed mews houses, two three-bed semis, five three-bed detached and 27 four-bed detached, four of which would be 2.5 storey.