London-based developer Sunley wants to turn the former offices in Priestgate, opposite Peterborough Museum and Art Gallery, into 24 high-quality homes.

If approved, two existing Grade II-listed buildings would be converted into eight self-contained flats, while the demolition of 20th century extensions would create space to erect two new blocks comprising 16 apartments.

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After Sunley purchased the buildings last year, the company's senior director John Ferree told The Evening Telegraph that a restaurant could be incorporated into the development.

However, that idea has now been dropped, and instead the one-time solicitors branch on the corner of Priestgate, a former vicarage which dates back to the late 17th century, will be refurbished and used for offices.

The scheme, which has been submitted to Peterborough City Council planning officers, sits comfortably with the council and Opportunity Peterborough's intention to increase the number of homes in the city centre.

It is thought that up to 3,900 homes could be built in the heart of Peterborough by 2026.

Welcoming the drive to create more city centre housing, the president of Peterborough Civic Society Rev Richard Paten said: "Having more homes is a must, socially and in terms of security."

A design and access statement drawn up by Concept Planning on behalf of Sunley said: "This proposal will regenerate part of Priestgate, and the city centre, and ensure the long-term future of nationally protected listed buildings."

Planners will have to decide if the application is an appropriate development within the city centre's conservation area, while the matter could be referred to a planning and environmental protection committee.

Opportunity Peterborough – the urban regeneration company charged with driving forward the city's growth agenda – has previously said that Priestgate could be transformed into a specialist retail area.

Sunley has established a reputation for turning old buildings into contemporary homes following a string of developments in the south-east and home counties.

To view the plans, visit the city council's Bridge House offices, on Town Bridge, on weekdays, between 9am and 5pm.