John Lewis, the retailer facing challenges on the high street, is moving forward with its transition into residential property by submitting initial planning applications for new "build-to-rent"
homes in London. The company has proposed nearly 800 rental homes across sites in West Ealing and Bromley, with plans for a Reading site to follow.
Last December, John Lewis announced a £500m joint venture with abrdn to construct approximately 1,000 new homes in the three locations. However, concerns have been raised about the height and affordability of the proposed sites.
London is currently grappling with a housing crisis, with property prices impacted by 13 consecutive interest rate hikes, resulting in higher borrowing costs. As a result, many individuals are unable to purchase homes and are forced to rent. However, rental prices have increased significantly during the cost of living crisis due to a shortage of supply.
Nina Bhatia, Executive Director for Strategy and Commercial Development at John Lewis, stated that the company has worked closely with local communities to understand their needs. Bhatia also mentioned that the proposed developments in Bromley and West Ealing will include commitments to affordable housing, with just over a third of the new homes designated as affordable and targeted at key public sector workers.
While John Lewis has not disclosed the specific rental costs, a spokesperson mentioned that the Bromley homes will be available at 100 percent London Living Rent, targeting key workers. The West Ealing homes, on the other hand, will be offered at a range of Discounts to Market Rent, with a significant proportion available at London Affordable Rent.
The developments will feature public spaces, landscaped surroundings, flagship Waitrose shops, improved pedestrian and cyclist access, resident lounges, dining areas, roof gardens, flexible workspaces, and a gym. Local councils in Bromley and Ealing have been contacted for comment.
This move by John Lewis comes at a challenging time for the company, as it reported losses of £234m in March. The impact of the cost of living crisis has affected frequent John Lewis shoppers, who have had to tighten their budgets and reduce spending on luxury homeware and designer products.
The build-to-rent sector, which focuses on providing rental homes for local communities rather than quick profit through sales, is growing in the UK. It plays a crucial role in addressing the housing crisis and meeting the increasing demand for rental properties as private landlords exit the market.