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Trafford Council has agreed to set up a joint venture with Trafford Housing Trust (THT) to build 150 homes in the Old Trafford area.
The partnership, which was approved by councillors at a meeting on Monday night, will deliver the homes as part of the regeneration of the former Tamworth Estate, once one of the most deprived areas of Manchester.
The site had been home to the iconic ‘Seven Sisters’ tower blocks before four were demolished in 2013.
THT has already built 26 homes which constituted phase one of the redevelopment programme.
The next 150-home scheme, known as Tamworth Phase II, is the first project to be announced since THT was acquired by London-based landlord L&Q last October. At the time, L&Q said the deal would unlock its desire to build 20,000 homes across the North West.
The THT and council joint venture already owns the site on a 50-50 basis, and the new agreement means the two parties will share any surpluses generated.
During the meeting councillors were asked how many social homes might be built on the site and said the tenure mix was yet to be agreed.
The site could make use of modern methods of construction, including off-site building, the council said, although discussions were at “an early stage”.
Talks regarding the formation of a project team are underway and a planning application is expected to be submitted in the summer.