The £86m scheme will be delivered at Guildford Park Road car park to deliver 248 new homes, with a around 40% to become council homes.
If approved, work is expected to start in summer 2026 with completion pencilled in for late 2028.
The council partnership scheme will consist of four mid-rise blocks, a run of 15 townhouses and a central pedestrian-friendly Living Street designed to stitch the new neighbourhood into the town.
Wates residential regional managing director Lee Bushell said buildings will range from four to six storeys, stepping down to two and three-storey family houses.
Wates and the local council have also wrapped an £11m social value package into the plans, promising 40 local jobs, work placements, training schemes, 200 hours of community volunteering, a graffiti clean-up programme and links with local schools.
