A £22 million deal has been finalised for the fourth phase of Derby’s Castleward regeneration scheme, introducing build-to-rent (BTR) housing for the first time in the development’s history.
The agreement brings together Lovell Partnerships and BTR developer-operator Placefirst, marking Lovell’s first BTR venture in the East Midlands. The deal extends Lovell’s role as lead contractor at Castleward, which is the city’s flagship £100 million regeneration project.
Placefirst has acquired two plots from Compendium Living that will deliver 33 single-family rental homes and 79 apartments. The handover of the first properties is scheduled for Q1 2026.
Located between Derby Midland Station and Derbion shopping centre, Castleward is set to deliver around 800 homes, commercial space, and green infrastructure by completion. The scheme plays a central role in the city’s residential pipeline and urban revitalisation strategy.
This latest phase signals growing institutional appetite for suburban BTR stock in the Midlands, underlining demand for professionally managed rental housing in regeneration-led zones.
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.”
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 of a number of delivery models we employ.”
