Council begins search to find developer to build housing on Lancaster car parks

Lancaster City Council has launched its search for a developer to build housing on two connected car parks in the city.

The council has begun a 'preliminary market engagement exercise' as part of plans for an affordable housing scheme on the upper and lower St Leonardgate car parks, near the Lancaster Grand Theatre.

The 0.9-hectare site – collectively known as Coopers Fields because of the area’s association with the brewery trade and barrel making - has long been identified for future housing as part of the planned Canal Quarter development.

A council spokesperson said this 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," said the spokesperson.

"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."

The council's plans to build houses on car parks in the city have proven controversial, particularly with local businesses.

The council's car parking strategy, for 2025-28, seeks to maintain around 1400-1500 car parking spaces in council-run Lancaster car parks.

Read more: New strategy approved for Lancaster city centre car parking - Beyond Radio

It also "recognises the urgent need to reduce car dependency by promoting walking, cycling, and public transport".

The city council currently operates 22 off-street car parks in Lancaster, providing approximately 1,624 spaces, including the upper and lower St Leonardgate car parks.

Included within this, are 11 car parks under 100 spaces and seven under 50. Several are permit-only.

Due to the temporary closure of the 287-space Castle Car Park (pictured below), a total of 1,329 spaces are currently available for general use.

The strategy says the St Leonardgate car parks site, which includes six coach bays, "is earmarked for phased release—potentially for social or affordable housing".

"Enabling works could be expected to begin in 2027/28, with options developed as part of this strategy to maintain strategic and locational capacity during transition."

The council also plans to build 39 new homes on the Nelson Street car park near Lancaster Town Hall, and a planning application went in earlier this year.

Read more: Plans go in for 39 new homes on Lancaster city centre car park - Beyond Radio

As part of the car parking strategy, to counteract the loss of parking spaces on Nelson Street and St Leonardgate, the council aims to develop additional car parking on a site opposite the old Kingsway baths.

They also plan to convert some permit only car parks in the city centre to short-stay, and expand the Edward Street car park. 

Councillor Peter Jackson (below), 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."

Construction on a St Leonards Gate site housing scheme could begin in 2027. The contract is estimated to be for three years.

"The council is particularly keen to hear from Registered Providers (RPs), developers with registered provider status in their business group, those with demonstrable capacity to partner with RPs, or those who are interested and may not fit in the above categories but would still be capable of delivering the same outcomes," says the preliminary market engagement notice, available on the council website.

"The regeneration of the Canal Quarter area is critical to enhancing Lancaster's role as a sub-regional centre and boosting its housing, commercial, cultural and leisure offer.

"Our ambitious vision is for a vibrant, sustainable and active Canal Quarter, integrated with the Lancaster Canal and served by areas of new public open space. A Quarter where contemporary development and hidden heritage can combine to create a diverse residential, commercial, cultural and recreational neighbourhood.

"Feedback is required to assist in identifying the site's potential opportunities, risks and constraints, with the intention of informing a future procurement and / or disposal strategy to secure the best delivery model for a successful outcome."

The plans are supported by the government’s Brownfield Land Release Fund (BLRF).

The market engagement will run until October 17. More information is available HERE.

In 2023, Lancaster City Council formally adopted a masterplan to revive the Canal Quarter area of the city.

The aim of the masterplan is to bring back into use many of Lancaster’s important buildings and derelict sites across 6.5 hectares of land, to "create a vibrant, sustainable, and active place which is integrated with the city centre and the Lancaster Canal", said the council.

The idea is to create a new sustainable mixed-use neighbourhood with approximately 580 new homes for families and individuals.

The masterplan includes "safe pedestrian and cycle friendly streets" with new pedestrian access to Lancaster Canal.

Space has also been set aside for business, retail, food and beverage outlets to complement what's currently in the city centre.

The masterplan also includes two new public squares to provide "lively social spaces" for events along a new Brewery Street. 

In June 2025, developers announced they had bought the derelict brewery site in Lancaster city centre aiming to transform it as part of the long-awaited Canal Quarter.

Marco Living and Axis-RE said they wanted to deliver a £100m "vibrant, commercial-led mixed-use" scheme on the land.

They later said they wanted to "take essential safety measures at the Brewery Lane site, beginning with the removal of structurally dangerous buildings".

Part of this includes controversial plans to demolish the Kanteena building, a popular location for live music and other events. It was announced earlier this year that Kanteena would close by the end of 2025.

Read more: Music fans rally against plans to demolish popular Lancaster venue - Beyond Radio