New council housing is to be built at an unused site in the Northern Quarter. The single-storey units facing Newton Street and the car park behind it in Postal Street are set to be turned into at least 100 low-carbon apartments.
At least 20 pc of the development would be available for 'accessible rent' which means they will be priced at or below local housing benefit levels.
This is the second city centre scheme announced by Manchester council's new development arm This City which aims to build 500 new homes a year.
Labour councillor Gavin White, who is the executive member for housing and employment at Manchester council, said: "The idea behind This City is to increase the number of homes accessible to Manchester residents, so it’s great to see the second site be brought forward quickly following the launch of the company last month.
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