The transformative Castleward Urban Village is set for its next phase, with planning permission granted for Phase 5.
This decision paves the way for work to begin on 167 new homes in the transformative city centre development. 30% of these will be affordable homes.
The required land has also now been transferred to developers Compendium Living. This includes former commercial properties on Liversage Street, Siddals Road and Canal Street, which will be demolished, to make way for the new properties.
The Council has worked to relocate affected businesses where possible, and those that wished to relocate have now found alternative premises.
Construction is anticipated to begin in early 2027, carried out by construction partners Lovell Partnerships, pending planning approval.
A planning application for this next phase was submitted in October 2025, with a decision expected later this year.
Councillor Nadine Peatfield, Leader of Derby City Council, said:
Castleward is one of our city’s key regeneration projects, transforming brownfield land into a vibrant new gateway to the city.
“I’m delighted that we’re closing in on this next phase and have got this land acquisition and planning decision over the line. Now, we can focus on delivering more high-quality homes in our city centre.
The £100 million development is one of the city’s largest housing and regeneration projects, situated between Derbion shopping centre and Derby Midland Station.
In total, the scheme will provide more than 800 new homes, as well as green space and nearly 35,000 square feet of commercial retail space. It is a long-term placemaking project, being delivered over a period of 15 to 20 years.
Bruce Lister, Managing Director of Compendium Living, said:
We are incredibly proud to have been granted planning permission to deliver the next phase of the impactful Castleward regeneration. Since work commenced on the project over 10 years ago, Castleward has transformed into a bustling and thriving community where people are proud to live and work, and we couldn’t be happier with the scheme’s success.
“We are now looking forward to commencing work on Phase 5, and will continue to hold ourselves to high standards as we deliver these latest homes to the same high-quality.
Lovell Partnerships regional managing director, Beth Bundonis, said:
This latest approval continues the strong momentum behind Castleward and marks an important step towards delivering more high-quality homes, including much-needed affordable housing, which will contribute to the long-term regeneration of Derby city centre.
“We’re proud to continue our partnership on a development that is transforming brownfield land into a thriving, sustainable community and look forward to starting work on site to deliver this next phase.
This project links to action 28 in the Climate Change Action Plan 2025-2027, supporting the Council’s aim to reach net zero by 2035.