The man was pronounced dead at the Royal Lancaster Infirmary this morning following the incident in Main Street just after 4am today, Friday.
Two people from Lancaster have been arrested while the enquiry continues.
Neighbours said they awoke to a line of police cars outside their homes as forensics officers arrived outside the private property where the incident occurred.
A crime scene investigation vehicle was also at the scene, and two evidence tents were set up in the street and front garden of the property.
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One neighbour said it was believed the man had only recently moved to the address along with his partner, two young children and a pet dog.
She said: “It’s awful to think of something like this happening right on your doorstep.”
Another said they were worried Skerton had a bad name, but said she had lived there her whole life and loved the area.
One man said: “I didn’t hear a thing, I slept right through it and woke up to a friend telling me what had happened. I didn’t know the guy but it’s not wehat you want to hear about happening so close to home.”
A road closure was set up by police throughout the morning.