Lovell and build-to-rent (BTR) specialist Placefirst have announced a landmark £22 million deal to deliver new rental homes in the fourth phase of Derby's major Castleward regeneration project.

The agreement marks a significant step in diversifying housing options in Derby city centre and is the first BTR partnership of its kind for Lovell in the East Midlands. Placefirst has acquired two parcels of land from Compendium Living, covering 33 single-family houses and 79 apartments, which will be delivered as fully serviced BTR homes. The first handovers are scheduled for the first quarter of 2026.

Lovell, which has played a key role in delivering the Castleward project since its inception, will continue its construction role under the new arrangement. The partnership reflects Lovell’s commitment to expanding housing choice and supporting strategic regeneration across the region.

Beth Bundonis, regional managing director for 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.

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"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."

Castleward, located between Derbion shopping centre and Derby Midland Station, is Derby’s most significant housing-led regeneration project. The £100 million scheme is set to deliver approximately 800 homes, green space, and 35,000 square feet of commercial space upon full completion in 2027.

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."

Planning approval for phase four was granted in May 2023. The new homes will complement existing multi-tenure developments in the area and reflect Derby's evolving housing needs, blending affordable and market-rate options. Phase five of the project is expected to follow soon, continuing progress towards the full regeneration of Castleward.