Green light for £10m redevelopment of former mill in Lancaster’s Canal Quarter

The £10m redevelopment is set to breathe new life into the historic site and act as a catalyst for the long-awaited regeneration of the surrounding area.

Owned by Afar Group Ltd and managed through Unipad Management Limited – both under the ownership of local developer Anas Mister – the project will modernise an existing student accommodation block that has fallen into disrepair, delivering benefits for local residents, creating jobs, and preserving the city’s industrial heritage.

A partially retrospective application was given the thumbs up by councillors on Monday for the change of use of 96-bed into 62 one-bed self contained student accommodation units, erection of a three-storey front extension linking the mill and annexe, erection of a cafe to rear and demolition of part of enclosure wall.

Built in 1819 as a steam-powered worsted mill and later adapted into student housing, Mill Hall has stood as a symbol of Lancaster’s industrial past.

However, decades of neglect have left its facilities outdated and the building vulnerable to vandalism.

Previous redevelopment proposals for Mill Hall were refused due to unsuitable designs, particularly the scale and materials of proposed extensions.

This application, designed by Zub Architecture, aims to address those concerns with a more sensitive approach. The redesigned three-storey front extension aims to respect the mill’s heritage, whilst providing a functional link to the adjacent annexe.

A standout feature is the transformation of a neglected upper garden into a stylish outdoor café, open to both students and the public, accessible from the canal.

The redevelopment will replace outdated rooms with 62 luxurious spacious en-suite studio apartments.

The project will create numerous jobs for the local economy, from construction roles during the build phase to ongoing positions in the management and operation of the property.

Additional amenities, including a communal gym and meeting space, will enhance the site’s functionality. These upgrades ensure Mill Hall remains a secure and vibrant asset. Its sustainability will be guaranteed as the new proposals also offer flexibility for hotel or short stay use.

The surrounding Canal Quarter has been a priority for Lancaster City Council’s regeneration efforts, with plans to revive its 6.5 hectare area of derelict land into a thriving neighbourhood.