FLATS FUNDING BOOST: Welsh Government to pour millions into city centre flats plan at McDonald’s site and Kingsway block

Swansea is in line for a major regeneration boost after the Welsh Government confirmed funding for two high-profile developments right in the heart of the city.

The cash forms part of a £12.6 million Wales-wide package – but a significant chunk is heading straight to Swansea, targeting long-standing empty upper floors and underused buildings.

At the centre of the plans is 1 Oxford Street – the busy McDonald’s site opposite Castle Square, where empty floors above could finally be brought back to life.

Up to £4.9 million in grant funding alongside a £1 million loan has been earmarked to help transform the building, with proposals already in place to create new flats above the fast-food restaurant.

It’s a site we’ve previously reported on, where plans have been drawn up to tackle one of the city centre’s most prominent unused spaces and turn it into much-needed housing.

Just a short walk away, another key Kingsway building is also in line for change.

Phase two of the Potters Wheel development – covering 85–86 Kingsway at the junction with Dillwyn Street and St Helen’s Road – will receive up to £750,000 in grant funding alongside a £1 million loan.

The project builds on earlier work at the site, where apartments were created above the ground floor pub and a striking green wall installed as part of efforts to bring more nature into the city centre.

Now, housing association Beacon Cymru is set to push ahead with further apartments on the upper floors – continuing the shift towards city centre living.

The Welsh Government says the funding is about more than bricks and mortar.

Cabinet Secretary for Housing and Local Government Jayne Bryant said:

“This funding is not just about infrastructure—it is about creating real, tangible change for the people who live and work in these areas.

“By revitalising town centres, supporting local businesses, and improving public spaces, we are helping to build places where communities can thrive both socially and economically.”

She added:

“We know that strong, vibrant high streets are the backbone of wider economic growth across Wales.”

The announcement was made during a visit to the Biophilic Living project at Mowbray Yard in Swansea City Centre – a scheme already showcasing how greener design and housing can reshape urban spaces.

The latest investment is part of the Welsh Government’s Transforming Towns programme, which has already pumped nearly £500 million into regeneration projects across Wales since 2020.

But for Swansea, the focus is clear – bringing empty buildings back into use and creating more homes in the city centre.

For years, upper floors above shops and businesses have sat vacant, even as demand for housing continues to rise.

Now, with millions committed to two flagship sites, there’s fresh hope that parts of the city centre that have long been overlooked could finally see new life.

And with both developments targeting highly visible locations, the changes won’t go unnoticed.

For Swansea shoppers grabbing a meal on Oxford Street or passing through Kingsway, the skyline above them could soon look very different.

Work starts on new homes and business hub at Swansea’s Kings Lane

The development sits behind Beacon Cymru’s Urban Village and marks the latest stage in a wider plan to breathe new life into this part of town. A six‑storey block of flats will be built alongside shipping‑container style units for local traders, with landscaped open space tying the scheme together.

Part of bigger regeneration push

The Kings Lane project is one piece of a much larger jigsaw. Swansea Council and the Welsh Government are backing plans to reconnect the city centre with the River Tawe, including a proposed new transport hub on The Strand near the railway station.

Earlier this month we reported on draft plans for a cultural quarter, market revamp and transport interchange — all designed to pull footfall back into the city centre.

Beacon Cymru: “We hold this area dear”

Rhianydd Jenkins, Executive Director of Development and Growth at Beacon Cymru Group, said:

“We are delighted to be progressing this next phase in our Urban Village development clustered around Swansea High Street and The Strand.

“This is a long‑term regeneration project for us in an area we hold dear; we’re pleased to be making it possible for more people and businesses to base themselves in this vibrant part of the city centre.”

Beacon Cymru are also leading the redevelopment of the former Castle Cinema into a mix of homes, offices and a restaurant overlooking Swansea Castle.

Council leader: “Boost for homes and jobs”

Cllr Rob Stewart, Swansea Council Leader, said:

“We’re delighted to support this next stage of regeneration in the city centre. This development will provide affordable homes and space for small local businesses, helping to bring new activity and confidence to the Kings Lane and Strand area.

“By working with Beacon Cymru and other partners, we’re continuing to heavily invest in the city centre to create opportunities for people who live and work in Swansea.”

Completion due in 2027

The Kings Lane scheme is expected to be finished in early 2027, adding to the transformation already underway across High Street and The Strand.

Related stories from Swansea Bay News

Plans for apartments and shipping container commercial unit revealed for Swansea’s Strand
Our 2023 report on the initial proposals for Kings Lane and The Strand, now moving into construction.

Swansea’s future mapped out: new transport hub, market revamp and cultural quarter in draft city centre plan
How the Kings Lane scheme fits into wider plans to reconnect the city centre with the River Tawe.

Former Castle Cinema in Swansea to be redeveloped into homes, offices and restaurant
Beacon Cymru’s other flagship project, transforming the historic Castle Cinema into a mixed‑use development.

Major High Street Urban Village scheme delivers new homes and business space
Background on the wider Urban Village regeneration that Kings Lane forms part of.

#affordableHomes #BeaconCymru #CllrRobStewart #CoastalHousing #construction #HighStreet #KingsLane #regeneration #shippingContainers #Strand #Swansea #SwanseaCouncil #TheStrand #UrbanVillage

Former Sancta Maria Hospital to be demolished under new plans for 42 affordable flats in Uplands

The proposals come from Beacon Cymru, the housing association formerly known as Coastal Housing, which wants to build 42 affordable homes on the site between Richmond Road and Ffynone Road.

Earlier plans to keep original buildings dropped

The site, which has been empty since the hospital moved to SA1 in 2021, includes two 19th-century villas that were later converted into a nursing home. Earlier design options explored keeping and converting the original buildings, but Beacon Cymru says those plans were dropped due to cost and layout issues.

Instead, the latest scheme would see all existing buildings demolished and replaced with five new blocks. The flats would be a mix of one-, two- and three-bedroom units, all for affordable rent.

Conservation area, steep site among key challenges

The site sits within the Ffynone & Uplands Conservation Area, and the design team says the new buildings will reflect the area’s character. The blocks are described as “pavilions in a landscape”, with features inspired by the original villas.

The plans also include new landscaping, sustainable drainage, and car parking. The site’s steep slope and proximity to listed buildings have shaped the layout and access points.

Public drop-in event on 16 October

A formal Pre-Application Consultation (PAC) is now open, run by Asbri Planning on behalf of Beacon Cymru. Residents have until 5 November to submit comments.

A public drop-in event will be held at St James Church Hall, Walter Road, Uplands on Wednesday 16 October from 4pm to 7pm. Full plans and consultation details are available on the Asbri Planning website.

Related stories from Swansea Bay News

Visit to explore new future for landmark Swansea building
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Another 43 townhouses and apartments to be built at SA1 Swansea Waterfront
Latest phase of SA1 development approved as demand for city living grows.

#affordableHomes #AsbriPlanning #BeaconCymru #CoastalHousing #construction #Ffynone #FfynoneUplandsConservationArea #flats #planningApplication #SanctaMariaHospital #socialHousing #Swansea #Uplands

Local multibank helping over 120,000 people each year gets £30K cash boost

The cash comes courtesy of Beacon Cymru Group, formed through the merger of Coastal Housing and RHA Wales earlier this year. The decision to increase investment from £20,000 to £30,000 was to support the objectives of stretching the service beyond Swansea to other local authority areas – aligned to Beacon’s areas of operations.

Cwtch Mawr is run by Swansea-based charity Faith in Families and is the first ‘multibank’ in Wales. Surplus goods donated by a range of organisations are processed at a central warehouse in Swansea for distribution across the local area.

Since its launch in March 2024, it has provided over half a million items to families and individuals in need, from baby essentials and toiletries to air fryers and school supplies, and is keen to expand its offer to more communities.

Serena Jones, Executive Director of Operations for Beacon Cymru said: “Coastal Housing was one of the principal investors in Cwtch Mawr in its first year and we are delighted to build on that support as Beacon Cymru.

“Regretfully, foodbank use has been on the rise in recent years due to the cost-of-living crisis but we also see huge demand for other non-food essentials in the areas where we work. Moving into a new home carries lots of additional costs and we know many new residents struggle to meet these.

“Cwtch Mawr’s multibank model is unique in meeting these extra needs so comprehensively and accessibly. We are proud to be increasing our support to help bring about change you can see for more people and families in south west Wales.”

 Cherrie Bija, Chief Executive of Faith in Families, said: “This incredible support from Beacon Cymru isn’t just about money – it’s about belief. It’s about recognising the strength, resilience and worth of people who are so often overlooked. At Faith in Families, we see the reality every day – families having to choose between putting the heating on or buying a school uniform, individuals moving into empty homes with nothing but hope to fill the space. That’s where Cwtch Mawr comes in. It’s a warm embrace, a helping hand, and a reminder that nobody should have to go without the basics to live with dignity.

“To have Beacon Cymru walk alongside us in this journey – not just maintaining their support but increasing it – is deeply meaningful. It’s a commitment to real, tangible change in our communities. It means we can reach more families, offer more essential items, and ensure that more people feel seen, supported and cared for.

“Together, we’re not just delivering goods – we’re delivering compassion, restoring hope, and building stronger, more connected communities across south west Wales. That’s the power of partnership. That’s the heart of Cwtch Mawr.”

#BeaconCymru #Charity #CoastalHousing #CwtchMawr #FaithInFamilies #foodbank #Multibank #Swansea

Visit to explore new future for landmark Swansea building

Plans for the building include 30 new apartments and new commercial units, thanks to a project led by local non-profit Beacon Cymru in partnership with contractors Easyliving Ltd.

In the building’s main elevation facing Worcester Place and the castle, a new commercial unit over two storeys will be created for a café/restaurant type use.

A new glazed box is proposed to overlook the castle and open space.

Intended to accommodate small-scale office use, other new commercial units will include the lower part of the building that fronts on to the Strand.

As well as a cinema, the building was also home to Lazerzone for many years before its relocation to the former Iceland unit on St David’s Place.

Swansea Council says it has supported Laserzone by granting the business a temporary lease for the unit, pending the regeneration of the overall former St David’s Shopping Centre site in the longer-term.

The council is also supporting the Castle Cinema building project via Welsh Government Transforming Towns funding.

Council Leader Rob Stewart recently visited the building with Cabinet Member Cyril Anderson.

Cllr Stewart said: “Many local people will have fond memories of time spent in the former Castle Cinema building. I can remember watching Star Trek 4: The Voyage Home there in the 1980s, and I also visited in the 1990s to play Laserzone.

“The building is a Swansea landmark and this exciting scheme led by Beacon Cymru and Easyliving Ltd means it’s set for a new lease of life.

“The project will also complement our plans to transform Castle Square into a greener, more welcoming space in a further boost for the city centre.”

Luke Takeuchi, Beacon Cymru Deputy Chief Executive, said: “We’re hugely excited about the Castle Cinema building project.

“It’s a great example of collaborative working for a scheme that will make the area more vibrant, while also helping tackle the housing crisis by providing a mix of one and two-bed apartments.”

Stephanie Hughes, Operations Manager at Easyliving Ltd, said: “We’re looking to start on site in the coming weeks and expect the project to take about 27 months to complete.

“It’s a really positive time for Swansea city centre with so much regeneration happening, so we’re delighted to be part of its ongoing transformation.”

Led by Swansea Council, work to transform Castle Square will start this summer.

The scheme will include feature a substantial increase in green space, a new water feature for interactive play, new outdoor seating areas, a giant new TV screen above a bandstand facility, the retention of public use space and two new pavilion buildings for food, drink or retail businesses.

#BeaconCymru #CastleCinema #CastleSquare #CllrRobStewart #EasylivingLtd #regeneration #Swansea #SwanseaCouncil

Amazing memorabilia unearthed at former Cinema due for redevelopment

Castle Cinema, up until recently has been home to Laserzone – a live action laser game played with special effects, fog, laserbeams and pulse pumping music.

After Laserzone’s relocation to the city centre’s former Iceland store, the building has been cleared revealing evidence if its earlier life as a cinema.

Built in 1913, Castle Cinema was the only building left standing after the blitz during the Nazi’s bombing raids in World War II.

The building was modernised in 1963, however it’s long decline started in the 1970s when it became notorious for showing soft core porn films.

It had a short-lived new lease of life in 1982. The acquisition of Cardiff-based Circle Cinema saw it show Hollywood blockbusters once again.

The cinema’s days were numbered once the neighbouring UCI cinema, now Odeon, in Parc Tawe opened in 1988. The last film shown was “Doc Hollywood” with Michael J Fox in 1991.

Workers have since discovered a treasure trove of cinema memorabilia in the now-empty building, including film posters, cinema equipment and even the old loveseat!

Led by local non-profit housing association Beacon Cymru, formally known as Coastal Housing, work will soon start to give the building a new future.

In partnership with contractors Easy Living Ltd, plans include 30 new apartments and two separate areas for commercial use.

The lower part of the building that fronts on to the Strand is intended to accommodate small scale office use and – in the main elevation facing Worcester Place and the castle – a new commercial unit over two storeys is being created that anticipates a café/restaurant type use.

A new glazed box is proposed that will form part of this unit and front onto the castle and open space.

The scheme is being supported by Swansea Council via Welsh Government funding.

Developers say the scheme has been sensitively designed in recognition of its architectural and historic importance, and aims to preserve as many of the original features as possible, while identifying sustainable uses that will ensure its long-term preservation as a key building in the city.

The council say they will also soon be starting work to revamp the nearby Castle Square into a greener and more welcoming space.

Do you remember watching films at Castle Cinema? Let us know below!

(Lead image: Swansea Council)

#BeaconCymru #CastleCinema #CastleSquare #CastleSquareGardens #CastleStreet #CoastalHousing #Swansea #SwanseaCouncil