A shop near a Tesco Express could be demolished to make way for five flats.
The Wood Floor Shop in Mawney Road, Romford, may be knocked down so a three-storey block of flats can be built in its place if a planning application is approved.
Havering Council, which has the power to decide if the proposal will go ahead, received the plans on April 2 and validated it two days later.
A decision date for the proposal, P0473.24, has been set to May 30.
Brajeff Flooring, which operated The Wood Floor Shop before it stopped trading, is the applicant behind the plans.
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Agent DLP Planning, on behalf of the applicant, argued that the proposal was in-keeping with Havering's demand for extra housing.
"Both strategic and local planning policies have highlighted the significant need for additional housing through the establishment of local, regional and housing targets.
"The proposed five new homes will make an important contribution towards local and strategic housing needs," the real estate agent added.
To address the loss of a business to the area, the agent argued that the store could not compete with neighbouring business Floors-2u.
"This [extra competition] forced The Wood Floor Shop to cease trading, and the renting of the warehouse was no longer required," it continued.
The agent went on to say that no one is employed at The Wood Floor Shop, removing the need for storage or warehousing at the site.
In a design and access statement from Simon Miller Architects, it was stated the total height of the building would not exceed that of 17 Mawney Road next door.
"Moreover, all new residential units will ensure a good lighting and ventilation as well as privacy," the architect added.
Building works are expected to begin in August if the proposal is green-lit, ending in January 2025.
In the planning statement, it revealed the development would be "car free", except the disabled parking which will be kept to the front of the building.
A cycle enclosure of up to 14 bike spaces would go to the site's rear, the statement shows.
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