Luton Looking Lively

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JRL and HGP have formed a £145 million joint venture to deliver build-to-rent homes in Luton – with HGP providing £28 million of equity funding, as it grows its exposure in the ‘UK Living’ sector.

HGP or the Housing Growth Partnership, is a Lloyds-backed equity investor.

Luton’s Castle Street development (the picture is of another JRL development – see below) 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’s equity funding for the JV, will sit alongside JRL’s equity, to deliver the project. JRL, the scheme’s developer and contractor. The company is targeting practical completion in December 2027.

Lovely Luton

Luton is considered an emerging a dynamic rental market. With nearly 49,000 renters and no institutional purpose-built buy-to-rent (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 BTR locations.

JRL

JRL is 50% owned by Malaysian conglomerate IJM. The Group has a consistent track record of completing large-scale residential and BTR 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 BTR and co-living homes, with flagship schemes being brought forward in Woking, Sutton, Luton and Manchester.

Matthew Beech, The investment director of JRL, says: “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, the investment director at HGP, adds: “This first joint venture with JRL underlines our confidence in the resilience of the UK 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.”

Picture: JRL’s One Thames City Vauxhall.

Article written by Cathryn Ellis
17th September 2025

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