A planning application has been submitted to the Guildhall to seek permission to partly demolish an existing building in Wellingborough Road, near the popular Hashtag restaurant.
If the plans are given the green light a new single-storey and two-storey rear extension could be built at 62-64 Wellingborough Road with a loft conversion including front and rear dormers.
The applicant, Mr Sivasamboo, has asked to build five one-bedroom flats upstairs and wants to also change the ground floor into a space to become a cafe, takeaway or restaurant.
This will, in turn, create two new jobs.
Documents submitted to the planning department read: 'The proposal intends to supply the shortage of affordable housing within the within region'.
It continued: 'The new change of use within the ground floor also opens up the possibility of new business to provide employment opportunity and provide greater variety of services to the community'.
But planning officers have raised concerns over the potential level of noise between the restaurant on the ground floor and the residential upper floors, which they say, needs assessing further.