A car park in Lancaster city centre will be closed from next week ahead of the first phase of development plans for the Canal Quarter.
The plans for 39 new affordable homes on the Nelson Street car park, close to Lancaster Town Hall, were given planning permission in October.
Lancaster City Council have now confirmed Nelson Street car park will close on Monday, February 2, at 8am.
The Nelson Street plans are for "39 residential units comprising of four dwellinghouses, two four-storey apartment blocks and one two-storey apartment block with associated parking, landscaping, public realm, associated infrastructure and alterations to canal wall".
There will be four development blocks consisting of one block with four three-bed dwellings; a block with 12 one-bed apartments and four two-bed duplex apartments; a block with three two-bed duplex apartments and a block with 12 one-bed apartments and four two-bed apartments.
Thirty two of the properties will be affordable rented and seven under shared ownership.
Below: How the development might look
Many local companies have spoken out in recent years against plans to build on car parks, because of the potential loss of parking spaces.
The council received 177 letters of objection to the scheme, on various issues including loss of city centre parking spaces.
There were two letters of support, citing the benefits of city centre housing.
Deborah Smith, the agent for applicant South Lakes Housing, said the scheme would "revitalise the city centre" and be the "catalyst for the development of the Canal Quarter" area of Lancaster.
"I understand some concerns about loss of car parking but this car park is under-used," she said, saying there was "ample alternative provision" in Lancaster city centre.
The new housing is 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.
A spokesperson for Lancaster City Council said: ‘’The development is a major step forward in supporting Lancaster’s long-term housing needs and the wider Canal Quarter regeneration.
‘’We’re committed to ensuring that there are enough general use spaces available at times of peak demand.
‘’The Parking Strategy, developed following extensive public consultation, balances the need for accessible parking with commitments to climate action, sustainable transport, and regeneration.
‘’It’s part of our vision to support local businesses and the economy while creating a more vibrant and inclusive city.
‘’Please do not leave your car overnight on Sunday, February 1, 2026 at Nelson Street.
‘’Use one of the alternative car parks instead.’’
Find alternative parking options at www.lancaster.gov.uk/parking
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