The builder will deliver 118 flats across two buildings and 10 town houses overlooking Ancoats Green in the city.

The Rodney Street development has been designed by architect Buttress and will benefit from a wider £32m investment package funded by Homes England in the local area of Ancoats, helping ultimately to unlock 1,500 new homes and bring the 20-year regeneration story of the area to a close.

This City has been established to scale up housing development to at least 500 properties each year using council-owned land to directly build the homes that Manchester people need.

At least 20% of these homes will be made available at the Manchester Living Rent.

Feasibility studies are already underway for future phases of This City development, with around 1,500 homes in the immediate pipeline.

Dave Saville, regional managing director for Construction North at Wates, said: “Rodney Street represents a pioneering shift in development approach for Manchester City Council and we’re proud to support them in their ambitions.

“We’ve worked closely with our project partners and the Council since the scheme’s inception to carefully plan out how we can ensure Rodney Street delivers its sustainability goals, as well as provides lasting benefit to the wider Ancoats community through Social Value initiatives.”

Gavin White, Manchester City Council’s chief for housing and development, said: “Marking our first start-on-site for This City is a real moment for us.

“The road to building this type of housing is always challenging, particularly in the context of the current economic conditions, but we are proud to celebrate these homes and what they will mean to the Manchester people who live in them.”