Manchester is set to see the construction of five new high-rise residential towers in its city centre, adding more than 2,300 apartments to its housing stock. The development, led by property firm Renaker, recently received decision notices following initial planning approval granted earlier in 2024. The project, situated on Great Jackson Street near Deansgate, will feature a tallest tower of 71 storeys reaching 213 metres, alongside four other towers ranging between 47 and 51 storeys.
Despite the scale of the development, none of the planned apartments will be designated as on-site affordable housing, a point that has sparked concern among local politicians and housing advocates. Currently, around 15,000 families in Manchester await council housing, with many facing waits close to a decade.
Critics have argued that the ongoing trend of large luxury developments without affordable counterparts exacerbates the city’s housing challenges. Reform UK councillor Sian Astley, a former mayoral candidate, has highlighted issues around transparency and questioned whether promises tied to the project’s financial arrangements will translate into meaningful contributions for affordable housing.
Under the planning framework, a section 106 agreement includes a ‘clawback’ mechanism that could return up to £33 million from the largest tower and £81 million from the other buildings to the city council, subject to viability testing. These payments depend on the profitability of the development, with different profit thresholds set for open market sales (20%) and build-to-rent apartments (12%) before funds become payable. The council expects viability assessments during construction to clarify the financial outcome, but critics remain skeptical about the likelihood of large sums materialising given current market conditions.
A Manchester City Council spokesperson acknowledged the challenges facing large-scale developments, citing tight profit margins and increased construction costs. The council stressed that it demands high-quality projects with substantial public benefits and rigorous independent testing of viability to ensure any contributions to affordable housing are justified. They also pointed to the city’s broader housing achievements, including a record number of affordable homes completed recently and a pipeline aiming to deliver at least 10,000 affordable units by 2032.
Renaker has contributed to Manchester’s infrastructure in previous projects, with investments backing a primary school, NHS medical facilities, and off-site affordable housing through restoration projects in Moss Side and Ancoats. However, the lack of any affordable homes within its luxury tower developments remains a contentious issue.
Green Party councillor Sarah Wakefield criticized the ongoing focus on market-rate apartments amid the city’s housing shortage, emphasizing concerns about affordability, family facilities, and environmental adaptations in new high-rises. She called on the council to curb developers’ influence over housing strategy to prioritize social and genuinely affordable options.
Meanwhile, local property rivals such as The Weis Group have voiced opposition to public loans previously extended to Renaker developments, questioning the legality and risks involved given the projects’ viability assessments.
As work begins on the new towers, Manchester faces ongoing debate over balancing investment in the city’s skyline with the pressing demand for affordable housing and equitable urban growth.