South Lakes Housing residential scheme within Lancaster Canal Quarter is given green light

A £10m housing scheme within the Lancaster Canal Quarter has been given the go-ahead. 

The residential development for 39 dwellings comprising three-storey townhouses and apartments was put forward by South Lakes Housing, which was selected as Lancaster Council’s preferred developer following a competitive tendering process.

The affordable housing project will be situated on Nelson St, the site of a Lancaster City Council car park just 400 metres from the city centre.

It occupies over 0.35 hectares and is one of the brownfield plots within the city, which forms part of the Canal Quarter.

Aside from delivering much-needed affordable housing in Lancaster’s city centre, the project will introduce new green spaces, encourage sustainable modes of transport and improve the public realm while opening up connectivity between the city centre and the canal, which supports Lancaster City Council’s Canal Quarter Masterplan.

Now that plans have been approved, construction is expected to start on site in January 2026, with completion at the end of 2027.

Martha Shields, head of development at South Lakes Housing, said: “This important project reflects our mission to make a positive impact on people’s lives by providing quality homes that create a platform for life.

"We’re thrilled that planning approval has been secured and that we can start transforming the existing brownfield site into something that will create a community in the heart of Lancaster.”

S&L Planning Consultants submitted the planning application for the project.

Deborah Smith, director of the consultancy, added: “The Nelson Street development will provide high-quality housing in the heart of the Canal Quarter and offer employment during its construction, boosting the local economy.

 “The scheme also resonates with the objective of the Council’s Canal Quarter Masterplan to create a vibrant new neighbourhood.”

Coun Caroline Jackson, leader of Lancaster City Council, said: “The development of Nelson Street is a vital step forward in the delivery of new affordable homes for the district.

“As a district council we are charged with supporting those who are unable to become home owners to find decent, affordable places to live.

"Wherever we can, we are making sure council land and resources are part of the mix, used to meet local housing needs and to support our communities.

“While the redevelopment of Nelson Street will mean a reduction in parking spaces, we have a plan to make sure this is addressed.

"Our parking strategy includes measures to maintain overall capacity, including the work taking place at the moment to extend Edward Street car park, a review of the Kingsway car parking possibilities, and the introduction of Moor Mills 4 for evening and weekend use.

"We continue to press the Department for Work and Pensions to progress repairs on the Castle car park.

"These improvements will ensure that there are sufficient general use spaces available to support local businesses and the economy, particularly at times of peak demand".