I’ve spent years covering the UK construction industry. Where are we going to put everyone?
The UK faces a shortage of 6.5 million homes when compared to similar European countries. Britain has just 446 homes per 1,000 people, the second-worst rate in Europe.
To close this gap by 2040, we need to build 565,000 homes per year. That’s more than double the current rate.
Two projects in the UK are taking a different approach. Instead of building from scratch, they’re converting existing structures into housing.
One project in Newcastle-under-Lyme is turning a 655-space car park into 111 apartments. Another in Coventry plans to demolish the Allesley Hotel and build 55 homes in its place.
I wanted to understand if this approach could help solve our housing crisis.
The Karparc Conversion: What Happens When You Turn a Car Park Into Homes
Capital & Centric started work in January 2026 on what they’re calling “Karparc,” the first multi-storey car park in the UK to be repurposed as residential accommodation.
The Midway car park in Newcastle-under-Lyme was destined for demolition. The structure wasn’t strong enough to hold modern electric cars, and the council had run out of options.
The £20 million conversion removes the ramps and adds floors. Each one-bedroom apartment covers what used to be five car parking spaces. The project includes one, two, and three bed units with communal amenities, a gym, mini cinema, yoga studio, and residents’ lounge.
They’re keeping and upgrading the basement parking. They’re adding rooftop “Dutch houses”—compact, efficient homes inspired by Dutch design on top of the existing structure.
The developer expects one-bed rents around £900-£1,000 and anticipates first occupancies in about 18 months.
This isn’t just about housing. It’s about what we do with the structures we have.
The Carbon Case: Why Reusing Buildings Matters
I’ve been digging into the environmental impact of construction. The numbers surprised me.
Buildings are currently responsible for 39% of global energy-related carbon emissions. Upfront carbon, the embodied emissions before a building is even used, accounts for half of the entire carbon footprint of new construction between now and 2050.
Reuse and renovation with system upgrades typically generates 50% to 75% less embodied carbon emissions than new construction.
When you reuse an existing building’s foundations and structure, you immediately reduce emissions by 50%.
Capital & Centric says the Karparc scheme saves “a shed load of embodied carbon by repurposing the existing building rather than building from scratch.”
The approach also improves the thermal performance of homes. You’re not just converting a building—you’re upgrading it.
Repurposing car parks minimizes waste production and keeps costs down. The price of an adaptive reuse project is never more significant than that of new construction. Even when a garage is in disrepair, the renovation cost equals or falls below the demolition and replacement cost.
The Potential: Nearly 1.2 Million Homes in Car Parks
I looked at how many car parks across the UK could follow this model.
Nearly 10,500 car parks in urban areas across the UK have been identified as having potential for residential conversion. Nearly 80% are surface car parks where it’s relatively easy to build upwards while retaining parking spaces.
Repurposing the UK’s 20,000 non-residential car parks could provide nearly 1.2 million homes for up to one million people based on average household size.
More than half of the identified car parks are in public ownership. The government has the ability to enable around 200,000 homes on urban car parks.
Councils and car park owners are already approaching Capital & Centric about similar opportunities across the country. The scheme is being hailed as a potential model for wider regeneration.
The infrastructure already exists. We just need to see it differently.
The Coventry Project: When Redevelopment Meets Resistance
Not every conversion project moves smoothly.
Coventry City Council is considering plans to demolish the long-running Allesley Hotel to build 55 homes. The amended scheme—reduced from an original 62 units to a mix of one- to five-bed properties—is recommended for delegated approval at the planning committee meeting on March 5.
But the project faces six objection letters plus concerns from highways, conservation, and tree officers. There are also nearly 50 letters of support.
The council is seeking almost £1.4 million in Section 106 contributions for health, sport, and education. They had requested more than £1 million to compensate for the loss of trees.
Developer Avant Homes West Midlands refused the tree payment but agreed to £210,000 toward biodiversity net-gain credits.
This tension between development needs and local concerns shows up in most redevelopment projects. You’re not just building homes, you’re changing communities.
The Bigger Picture: What This Means for UK Construction
The Government is aiming to build 1.5 million homes over the Parliament in England. But barely 200,000 were built in 2023-24.
That gap represents a massive delivery challenge for the construction industry.
Traditional new builds alone won’t close this gap fast enough. We need multiple approaches running in parallel.
Adaptive reuse offers several advantages:
Faster delivery timelines compared to ground-up construction
Lower embodied carbon through structure retention
Efficient land use in urban areas where space is limited
Cost management through renovation versus demolition and rebuild
Immediate impact using existing infrastructure
The Karparc project is part of a wider £90 million regeneration of Newcastle-under-Lyme, supported by the Borough Council and backed by a £19 million funding boost from Homes England’s Brownfield Infrastructure Land fund.
That level of institutional support signals a shift in how we think about urban development.
The Challenges: What Stands in the Way
This approach doesn’t solve everything.
Local objections remain a hurdle. The Coventry project shows how community concerns about trees, highways, and conservation can slow or stop development.
Financial disagreements between developers and councils create friction. The tree payment dispute in Coventry shows how negotiations over Section 106 contributions can become contentious.
Technical limitations exist. Not every car park or building can be converted. Structural integrity, location, and existing infrastructure all play a role in feasibility.
Initial skepticism from local residents can delay projects. The Karparc conversion faced doubts from the community before work began.
Planning approval processes remain complex and time-consuming, even when the benefits seem clear.
What Happens Next
The Karparc project expects first occupancies in 18 months. That timeline will tell us about the viability of this approach at scale.
Other developers are inquiring about Capital & Centric’s model. Interest is there.
Local authorities hold the key. With more than half of potential car park sites in public ownership, government decisions will determine how quickly this expands.
The balance between development speed and community concerns will shape future projects. Support and objections coexist.
Funding mechanisms matter. Homes England’s backing for Karparc proves institutional support makes these projects viable.
The Real Question
Can repurposing car parks solve the UK’s housing crisis?
Nearly 1.2 million potential homes exist in car parks across the UK. That’s significant, but not the full 6.5 million shortage we face.
This approach works best as part of a broader strategy. We need new builds, conversions, adaptive reuse, and innovative urban planning, all working together.
The infrastructure we have holds more potential than we recognize.
A structure destined for demolition can become 111 homes. That shift in perspective matters.
We’re facing a challenge that requires us to look at existing spaces differently.
The next 18 months will show whether this model can scale and whether other developers and councils are willing to follow.
The UK construction industry needs solutions that work with what we have, not just what we can build from scratch.
This might be it.
