Council starts early market engagement exercise for Canal Quarter housing site

A preliminary market engagement exercise has been launched for the St Leonards Gate upper and lower car parks in Lancaster as part of plans to create new affordable housing for local people.

The 0.9-hectare site, known as Coopers Fields for the area’s historic association with the brewery trade and barrel making, has long been identified for future housing and is supported by the government’s Brownfield Land Release Fund (BLRF).

The initial exercise is designed to test market interest from organisations with the appetite and ability to work in partnership with the city council to deliver affordable and social housing.

It will also shape how any future formal development opportunity could potentially be structured to meet the council’s objectives.

However, the council is committed to ensuring that no development will take place until actions set out in its Lancaster City Centre Car Parking Strategy are delivered.

Assurances are in place that overall car parking capacity in the city centre can be maintained at a sustainable level.

Coun Peter Jackson, cabinet member with responsibility for Lancaster Regeneration and Local Economy, said: “The regeneration of the Canal Quarter is a once-in-a-generation opportunity to reshape a key part of our city and provide much-needed affordable housing.

“St Leonards Gate is central to this vision, but we are equally clear that housing here can only come forward once we are confident that there is a sustainable and balanced provision of car parking to maintain city centre accessibility.

“This early market engagement is about understanding the best way to secure a delivery partner while protecting our commitments to residents, businesses and visitors”.

If progressed, the St Leonards Gate site would deliver a predominantly affordable housing scheme, helping to meet local need in line with the council’s Homes Strategy and the Canal Quarter Masterplan. The earliest that construction could begin is 2027.

The market engagement will run until October 17, with responses to be submitted through The Chest procurement portal. More information is available at https://www.find-tender.service.gov.uk/Notice/054546-2025.