Central Bletchley councillor Elaine Wales says the current planning application for Albert Street should be withdrawn.
The current development proposal states that a set of modern flats will be built in the area.
Councillor Wales says the withdrawal of the application would allow more family-focused housing and flats to be built, backing onto Saxon Street and the railway line.
She added: "Albert Street is a lovely road of Victorian terraced properties. I believe that the new houses should be built along the street, opposite the traditional houses, and any flats built at the rear of the site. I also believe it should be a development of Council housing and low cost homes for sale. A community that local people can afford to live in."
As a result of this, Councillor Nigel Long, Cabinet Member for Housing, has requested that the Council's Housing service buy the site or create a partnership arrangement.
Cllr Long said: "I welcome Councillor Wales taking this opportunity to push for a community focused development. I have asked the Council's Housing service to look at either buying the site or seeing if a partnership agreement is a runner, given the site is privately owned.
"I am pleased that the Council is going to look at the opportunity for a community focused approach. We need decent family homes and some flats. But most of all we need housing that meets local housing needs."