An application for permission for the principle of developing the site has been submitted to South Holland District Council.
It says: “Lincolnshire County Council has obtained funding from the Homes and Communities Agency to enable 15 of the proposed 22 dwellings to be constructed as Starter Homes.
“The Starter Homes Local Authority Funding Programme is designed to accelerate the supply of brownfield land available for starter homes development.
“These homes will be available for sale at 80 per cent of market value for first time buyers under the age of 40.”
Access to the site is proposed to be from Albion Street.
Lincolnshire County Council was among the first 30 local authorities to be selected to roll out the Starter Home scheme, which is in its first year.
South View Primary School moved in 2014 to the former St Guthlac School site, which closed in 2012.