Housing specialist strikes £22m build-to-rent deal at Castleward

Housing specialist Lovell has announced a £22 million build-to-rent deal to deliver the next phase of Derby’s Castleward regeneration project.

The agreement with BTR developer-operator Placefirst marks a regional first for Lovell, which will continue its longstanding delivery role at Castleward.

Placefirst has acquired the site, which part of the fourth phase of the £100 million Castleward scheme, from Compendium Living, comprising houses and three apartment blocks across two parcels of land.

It will see the development of 33 single-family houses as well as 79 apartments. The first handovers will be in early 2026.

Beth Bundonis, regional managing director at Lovell in the East Midlands, said: “Our vital work to create purposeful communities and bring forward effective housing in the East Midlands continues, with phase four – and the forthcoming phase five – adding to the vital regeneration of Derby and creating a lasting legacy built around top-quality housing.

“This deal allows us to broaden the scope of what’s being delivered in Castleward and is a first for Lovell in the East Midlands, helping to solidify us as an enabler of housing choice for the fantastic partners we work with.

“Through those such as Placefirst and Compendium Living – the latter of which has sold homes under the previous three phases – we’re able to make sure that whether they are looking to rent or buy, people can find a new home at Castleward.”

Located between the Derbion shopping centre and Derby Midland Station, the Castleward scheme is one of the most significant housing projects in the city.

Overall, it is set to deliver around 800 new homes, along with green space and 35,000 sq ft of commercial retail space.

Henry Marshall, investment director at Placefirst, said: “This latest partnership with Lovell marks an exciting milestone for Placefirst as we continue to grow our presence in the East Midlands – a region with huge demand for high-quality, sensitively-designed rental homes in well-connected, vibrant locations.

“This forward-funded deal is a great example of how we work flexibly with partners to unlock opportunities and bring long-term, professionally managed homes to market – just one a number of delivery models we employ.

“As a developer-operator specialising in the delivery of high-quality, sustainable homes for rent, we know that the modern renter now sees renting as a positive, long-term, hassle-free lifestyle choice.

“We’re proud to be delivering the kind of homes and neighbourhoods that meet those evolving expectations.”

The fourth phase of work at Castleward was given the green light by planners in 2023.

It sits alongside existing multi-tenure developments in the area and forms part of a broader ambition to reflect an evolving market that includes both affordable and market-rate housing options.

Phase five is expected to come to the fore soon, continuing momentum of the large-scale development towards overall completion in 2027.