Momentum builds for Lancaster’s Canal Quarter with 39-home pitch
South Lakes Housing is seeking permission from the city council to develop the fully affordable scheme on a plot sandwiched between two of the city’s most important heritage assets, the town hall and Lancaster Cathedral.
David Cox Architects designed the 39-home affordable scheme to allow residents to benefit from canal views and direct towpath access.
The proposed housing mix would see 35 one- and two-bedroom flats and four three-bedroom townhouses built on the surface-level car park off Nelson Street.
A planning statement submitted to Lancaster City Council by S&L Planning Consultant indicates the homes would be provided on a tenure mix of affordable rent and shared ownership.
The shared ownership properties would also be allocated the only eight car parking spaces.

Credit: via planning documents
Access to the canal would be widely altered with the development to allow for far greater public access.
The canal wall would be reduced in height, and obstructive trees would be removed to allow the scheme to front onto the waterside.
South Lakes initially sought permission for 43 homes – however, this number was tinkered with, and a full application has now been submitted for the 39 properties.
In July 2024, South Lakes and Tyson Building Contractors were selected by Lancaster City Council as the preferred development partners for the brownfield site.
The scheme slots within the Lancaster Canal Quarter masterplan and is one of the first schemes within it to get plans validated.
Plans for the mixed-use 15-minute neighbourhood include around 580 homes and 75,000 sq ft of commercial space between St Leonard’s Gate and Quarry Road.
Lancaster’s Canal Quarter is gaining momentum. In May, Axis-RE bought Lanmara Developments and with it a three-acre plot, known as Brewery Lane, within the Canal Quarter.
The developer expects the land could have a GDV of around £100m, and a planning application in collaboration with Marco Living is now expected in the coming months.
Those working on the project team include Adapt Heritage, Ashley Helme Associates, Complete Sustainability Solutions, RG Parkins, ERAP, and Lakeland Tree Consultancy.
To view the application, use the planning reference number 25/00615/FUL on Lancaster City Council’s planning portal.