Latest News | 10th September 2025

JRL and HGP form £145 million JV to deliver first Build-to-Rent homes in Luton

-HGP to provide £28 million of equity funding, as it continues to grow its exposure across the high-growth UK Living sector-

London, 9 September 2025 – JRL Group (“JRL” or “the Group”) and Housing Growth Partnership (“HGP”), the Lloyds-backed equity investor in the UK Living sector, have formed a £145 million joint venture (“JV”) to deliver a 414-home multi-family scheme in the heart of Luton.

The Castle Street development will comprise 402 private rental apartments and 12 Discounted Market Rent homes across three blocks, with residents benefitting from high-quality amenities including a rooftop lounge, co-working spaces, gym, landscaped roof terraces and shared gardens.

HGP is providing £28 million of equity funding for the JV, which will sit alongside JRL’s equity, to deliver the project.

With the construction phase underway, JRL, the scheme’s developer and contractor, is targeting practical completion in December 2027.

Luton, just 23 minutes by train into Central London, is one of the South East’s most emerging, dynamic rental markets. With nearly 49,000 renters and no institutional purpose-built BTR in operation, demand for housing is rising sharply while supply remains constrained. The town is also undergoing a £1.5 billion regeneration programme, which includes the expansion of London Luton Airport and the creation of a new Luton Town FC stadium alongside a 20-acre mixed-use neighbourhood. Combined with fast rail links to King’s Cross in just 26 minutes, Luton is positioned as one of the UK’s most compelling Build to Rent locations.

Backed by Malaysian conglomerate IJM, which owns 50% of the business, JRL is one of the UK’s leading developer/contractors. The Group has a consistent track record of completing large-scale residential and Build to Rent schemes, underpinned by its ability to combine in-house construction expertise with development capability.

Castle Street forms part of JRL’s expanding development pipeline of more than 2,300 Build to Rent and co-living homes, with flagship schemes being brought forward in Woking, Sutton, Luton and Manchester.

Matthew Beech, Investment Director of JRL, said: “Forming this partnership with HGP to bring forward our Castle Street development is a significant milestone for the scheme. Castle Street will set a new benchmark for rental living in Luton, a town undergoing a once-in-a-generation regeneration, with investment transforming its economy, infrastructure and public realm. By delivering high-quality, professionally managed rental homes, JRL is proud to be helping to shape the future of Luton.”

Colin Bennett, Investment Director at HGP, added: “This first joint venture with JRL underlines our confidence in the resilience of the Living sector at a time when economic and planning constraints are impacting housing starts. We are excited to bring the first BTR homes to Luton, made possible by the alignment of JRL’s delivery expertise with our flexible, long-term investment approach. This partnership will accelerate the scheme’s delivery, and we look forward to exploring further opportunities together in the future.”

-ENDS-

Notes to editors

For more information on HGP, please contact:

FTI Consulting

Richard Gotla, Bianca Nicolescu

hgp@fticonsulting.com 

About HGP:

HGP (Housing Growth Partnership) is the Lloyds Banking Group and Homes England-backed equity investor focused on the UK Living sector. We invest capital alongside developers and housebuilders to enable the accelerated delivery of homes across the UK.

We do this through our unique investment approach, which shares both risk and reward with our partners. We have a track record of, and commitment to, delivering tangible social impact through our investments.

Our team has the expertise and flexibility to fund multiple tenures, including family housing, apartments, build to rent, regeneration, affordable housing, student accommodation and retirement living.

Since 2016, HGP has partnered with 87 developers across 161 schemes, committing to 12,500 homes of which 4,200 homes have been built and sold, with the balance of 8,300 in development.

© 2024 Housing Growth Partnership. All Rights Reserved.

Housing Growth Partnership Manager Limited, 25 Gresham Street, London, EC2V 7HN, Registered Company Number 09507116, registered in England and Wales.

Authorised and regulated by the Financial Conduct Authority, firm reference number 709515

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