Gleeson Homes and Regeneration has applied for planning permission to build a mixture of two, three and four-bedroom detached and semi-detached properties on a site near Travellers Green.
All of the houses will have a minimum of two off-street parking spaces and ample gardens.
The 5.3-acre site was previously a garden nursery and has been vacant since 2006, when the business closed and associated buildings were demolished.
It is often targeted by flytippers and has become a hotspot for anti-social behaviour.
The application, now in the hands of Durham County Council planners, has attracted two letters of objection from nearby residents, with one woman expressing concerns about additional traffic on an already busy bus route.
But a transport assessment, carried out to accompany the application, has concluded the development would have an “insignificant effect” on existing roads in the area.
Within the application, Gleeson Homes and Regeneration has also stated: “The applicants have undertaken considerable pre-application dialogue with architects, local residents, consultants and relevant officers at the council to ensure the scheme not only delivers high quality design but also responds to the aspirations of the local community.”
The public has until Friday, August 1, to comment on the application at durham.gov.uk