Green light for housing on Lancaster city centre car park
Plans for 39 new homes to be built on a public car park in Lancaster city centre have been approved by city councillors.
Members of the planning committee gave the thumbs up to the £10m Nelson Street scheme when they met on Monday.
The development for three-storey townhouses and apartments was put forward by South Lakes Housing, which was selected as Lancaster City Council’s preferred developer following a competitive tendering process.
The affordable housing project will be situated on the site of a council car park just 400 metres from the city centre and forms part of the Canal Quarter.
The scheme will comprise 32 affordable rented homes and seven shared ownership homes, with a mix of house types including one, two and three-bedroom.
A Lancaster City Council report described the plans as the "first step in the delivery of a wider reaching regeneration objective for the Canal Quarter area".
It said there remains a "significant shortfall" in housing supply in the district, particularly affordable housing.
"This would to a degree help address the significant shortfall in the five-year housing land supply position and, perhaps more importantly, the acute undersupply in affordable housing,” the report said.
"The proposal will also result in the redevelopment of an existing brownfield site and will provide the catalyst to unlock the wider regeneration opportunities set out within the Canal Quarter Masterplan.
"The proposal represents an inclusive and sustainable design that successfully incorporates and enhances existing pedestrian linkages and secures new pedestrian linkages to the canal towpath, to the benefit of residents and the wider community.
"Attractive on-site open space along with highly sustainable and adaptable accommodation lie at the heart of the scheme and will promote a healthier and sustainable place for future residents and the existing community."
However, there had been concerns raised by residents and business owners about a potential loss of parking spaces.
Construction is expected to start on site in January 2026, with completion at the end of 2027.
As an independent, not-for-profit housing association, South Lakes Housing is the largest provider of affordable rented housing in South Lakeland, with homes covering south Cumbria and north Lancashire.
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.”
Deborah Smith, director of S&L Planning Consultants who submitted the application, 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.”
Council leader Coun Caroline Jackson 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 homeowners 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."