Plans have been submitted to Durham County Council to build 12 new homes at the site of a former petrol station on the A167.
Developer Modo Bloc is hoping to get the green light on the plans to construct 12 "modern family townhouses" at Neville's Cross, with the site sitting off the A167 Newcastle Road.
The brownfield site has been derelict for some 15 years and is said to be overgrown with "Japanese knotweed".
Read more: North Yorkshire Council: Recent planning applications
New homes will feature "lush, green landscaping" according to developers.
This announcement comes two years after initial plans were submitted for the site which garnered a mixed reaction from locals at the time.
In 2021, Duncan Hill, of Durham said: "I object to this application, following the similar arguments made by others that this would indeed become a rat run.
"The developer says that only a small portion of traffic turns down Nevilles Cross Bank, and that may be true but it is still more than the road can cope with given the nature of parking on that road."
Ellam Avenue resident Charles Augarde said: "I live the other side of the Nevilles Cross junction from the site less than five mins walk away, and am in favour of the site finally being used for housing (for anyone) after 15 years derelict.
"I have ticked neutral because I think the proposed link road is not necessary and is a potential rat run which, if we could avoid creating, we should."
Said mixed reaction prompted developers to listen to concerns as locals have now been assured that their feedback has been taken into consideration.
George Jenkins, Managing Director of Modo Bloc said: "This is a prime location on a main approach into Durham City that’s in desperate need of regeneration.
"It’s an eyesore that needs careful attention to breathe some life back into it.
"There is a clear lack of family homes in and around Durham and our proposal would go some way to easing the housing shortage in the local area.
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"We hope to create a micro-community in this part of Neville’s Cross.
“We recognise there is some local unease to any new development, but we have listened to local concerns and taken these into consideration when designing the site.
"The development will also have a big focus on sustainability and have a low environmental impact."
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