A garden centre and nursery and shops is in line for replacement with nearly 50 homes.
Developers Cameron Homes want to clear the buildings on the 14 acre priory Nursery Garden Centre in Breedon on the Hill.
A planning application for 46 homes is being considered by North West Leicestershire District Council.
A document submitted says: “The scheme proposes a high quality development of 46 dwellings.
“This will bring forward housing to meet local needs, including provision for affordable housing.
“The proposal is of a scale that is proportionate to the size of the settlement. It will not have any adverse affects on highway safety.
“Proposals will create a high quality development which respects the character of the surrounding area.”
Villagers have made objections to the plan. This includes concerns that it encroaches onto land to the west of the village.
Objectors also say the village does not have the facilities to cope with another 46 houses.