Housing Association Accent Housing wants to build two blocks of flats, one of which would front The Pavilions in Alma Road, Millfield.
Vehicle access would be via Alma Road, while there would be 24 parking spaces at the site.
A planning statement submitted to Peterborough City Council states that the site was originally “to be used for a medical centre”.
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However, it adds: “There is an urgent need to provide new affordable housing in Peterborough which is currently not being met.
“In this context, the ability to deliver 12 high quality affordable homes in a sustainable location is in the public interest.
“The proposal comprises an attractive development which responds positively to the character of the local area and adjacent developments, will protect the residential amenity of neighbouring occupants and will provide a high standard of accommodation for future residents of the scheme.”