Preparations for affordable housing scheme get underway
The first phase of work needed to transform the former Nelson Street car park in Lancaster into a new development of 39 much-needed affordable homes has got underway.
Tyson Construction has started the first phase of remediation works, a much-need step in clearing the site and preparing it for the building of the new properties. The project is being supported by the Brownfield Land Release Fund (BLRF), part of the Government’s One Public Estate programme, which has been instrumental in making the work possible.
On completion, South Lakes Housing will be able to begin work on delivering 32 homes for affordable rent and seven shared ownership properties, helping more people access a safe and secure place to live.
Designed with sustainability at its heart, the homes will be built to high environmental standards, with a strong focus on energy efficiency to help reduce running costs for residents while lowering carbon emissions.
The development will also enhance the surrounding area, introducing new landscaping and opening up connections between the city centre and the Lancaster Canal, supporting wider ambitions for a vibrant Canal Quarter neighbourhood.
Councillor Caroline Jackson, leader of Lancaster City Council, said: “It’s great to see work beginning on the first stage of bringing this important site back into use. Preparing the land for development is a significant milestone and moves us a step closer to delivering much-needed affordable homes in Lancaster.
“This project demonstrates what can be achieved when partners work together, with support from Government funding helping to unlock a brownfield site in the heart of the city. It is an important step towards meeting local housing needs and creating a thriving new neighbourhood in the Canal Quarter.”
Martha Shields, Director of Assets & Development at South Lakes Housing, added: “This development demonstrates what can be achieved through strong partnership working, with a shared ambition to create high-quality, sustainable homes for the local community.
“With demand for affordable housing remaining high, developments such as Nelson Street play a crucial role in addressing local housing need. By providing a mix of affordable rent and shared ownership homes, this 39-home scheme will help more people access high-quality housing while delivering energy-efficient homes that support long-term sustainability and lower living costs.
“We are proud to be working alongside Lancaster City Council, Tyson Construction and our wider project partners, to bring forward a development that will not only provide much-needed homes but also contribute to the wider regeneration of the Canal Quarter. We look forward to bringing these homes forward and welcoming future residents to this new community.”
Jeremy Whittle, Managing Director of Tyson Construction, said: “We are absolutely delighted to be starting work at Nelson Street. This important development will provide 39 high-quality, energy-efficient, affordable homes for Lancaster and we are very proud to be delivering it alongside Lancaster City Council and South Lakes Housing.
“Our relationship with both organisations has been built over many years and through several successful projects. That long-term partnership gives us a shared understanding of what good delivery looks like - not only constructing excellent new affordable homes, but creating opportunities for local people along the way.
“Through our Employment and Skills Plan, we will deliver apprenticeships, work placements, training and engagement with local schools and colleges, ensuring the investment in Nelson Street leaves a wider and lasting legacy for the Lancaster community.”
The Nelson Street development forms part of the wider Canal Quarter masterplan, which will transform underused land into a thriving new neighbourhood, helping to meet Lancaster’s housing needs while supporting economic growth and sustainable development.
To mitigate the loss of parking through the scheme, the council’s Lancaster City Centre Parking Strategy sets out how sufficient strategic car and coach parking spaces will be maintained to support the local economy and accessibility needs.
Steps already taken towards maintaining and improving parking provision include the opening of additional evening and weekend parking at Moor Mills.
St Nicholas Arcades car park is also now open later, and temporary private sector parking within the Canal Quarter is being delivered and run by developer Axis RE:.
In addition, discussions are also well advanced with the Department of Work and Pensions to bring the Castle car park back into use.
Last updated: 17 September 2026