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Plans to build 49 new homes on Lancaster car park take step forward

Nelson Street car park in Lancaster

Controversial plans to build 49 new houses on a Lancaster car park as part of the Canal Quarter development have taken a step forward.

South Lakes Housing and Tyson Construction have been given exclusive rights to draw up proposals for a new affordable housing and mixed tenure development on the Nelson Street car park. 

The new housing will be part of Lancaster City Council's long-held ambition to develop the Canal Quarter area of the city, transforming derelict and underused land into a brand new neighbourhood.

There are also longer-term plans to build on car parks on St Leonard's Gate and Edward Street.

But the plans to build on car parks have been opposed by residents and Lancaster business owners, who are worried about a potential loss of parking spaces.

By April 2026, the council says, despite losing Nelson Street, it’s planned that the total number of spaces will increase to 1,554, rising to 1,654 with Kingsway. This exceeds the current availability of 1,329.

In October 2024, the council announced plans to work towards providing 1400 to 1500 car parking spaces in the city centre in future, after previously targeting 1300 to 1400 spaces.

It likely to be at least a year before the development begins and the car park closes.

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