Croft House Farm on Wigton Road has been described as a dangerously unstable structure and beyond the point of repair.
A planning application has now been lodged with Allerdale Council by F Scott Builders Ltd of Wigton to demolish the building and replace it with the homes.
Allonby parish council has no objections to the building of the new houses but has major concerns about the narrow Wigton Road.
The council also felt the proposed houses and pavement should be set back from the road to allow traffic to pass.
Only one letter from people living nearby has been lodged, from Lyn and Andy Lewis, who own a holiday let on The Square.
They want clarification on a number of issues, including demolition noise levels.
Consultation ends on September 9.
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