Plan for apartments for former Liquid nightclub in Ashford scrapped amid concerns over housing market

Plans to turn a derelict nightclub into apartments have been abandoned as developers say the property market “is not particularly strong”.

The HS Pledge and Son flour mill in Ashford, which previously housed the town’s Liquid nightclub, was to be transformed into 53 apartments after the borough council approved the project in 2022.

But developer Oliver Davis, who took over the site a year earlier, confirmed this was no longer happening – saying it had attracted more interest from commercial than residential tenants.

He says the unlisted building will undergo a long-overdue renovation as it is transformed into “flexible office space”.

It comes as the latest edition of the Kent Property Market Report reveals office rentals increased by 20% in Ashford between 2023 and 2024, eclipsing the Kent average of just 2%.

But the same report shows the district’s average house price rose 2.2 percent, compared with a 3.9 percent drop countywide, suggesting the region still needs more housing .

Despite this, Mr Davis says he has now abandoned his residential project, which was to include a mix of one- and two-bed apartments.

“We have changed our approach to buildings: they will all be for commercial use,” Mr. Davis said.

“The real estate market is not particularly dynamic at the moment.

“We have some good potential tenants on a commercial basis, so we have just decided that commercial use is a better approach.”

Mr Davis, whose company MTH Flour Mills Ltd owns the site, says he is currently completing another project elsewhere in the county before moving on to the East Hill project in January.

“We have about 13,000 square feet of office space there,” he added.

“It will be a flexible office space, there will be a series of small lettable spaces ranging from single offices up to 20 people, so it will be divided according to demand.”

Mr. Davis says one tenant, a kitchen showroom, has already been selected, despite interest from several others.

Its original plan, which was to include a cafe and a large gym, was delayed by pollution problems at the Stodmarsh nature reserve, near Canterbury.

This protected beauty spot has been affected by sewage runoff from developments in east Kent, causing high levels of harmful nitrates and phosphates.

As a result, the rules set out by Natural England insist that developers must ensure that all projects in the River Stour catchment are “nutrient neutral” – either by having a water treatment facility on site, or by offsetting the impact by providing mitigation measures elsewhere, such as wetlands.

Until 2014, the old mill built in 1901 was a selection of nightspots, with Liquid becoming the latest name to occupy it.

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Before Mr Davis took over the flour mill, proposals emerged in 2017 to transform the seven-storey building into a performing arts center for Ashford School, complete with a 250-seat theater and offices for staff, but the project never saw the light of day.

Last year, a bizarre TikTok video revealed what the site looked like after urban explorers ventured into the building.

The Kent Property Market Report, now in its 33rd year, is produced by Caxtons Property Consultants, Kent County Council and the county’s inward investment agency, Locate in Kent.