The contractor Bam is negotiating to deliver a 32-storey co-living scheme on Manchester’s Water Street, the first such project for the developer Vita in the UK.

The new development will offer 388 flats in two, three and four-bedroom cluster apartments as well as some studios, aimed at “graduates just out of university, bar workers, the life blood of the city who are currently unable to live anywhere near where they work”, to encourage them away from housing stock which could be better used for families.

The site previously had planning permission for two residential towers.

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