The John Lewis Partnership has pulled out of a £500 million partnership to develop nearly 1,000 build-to-rent homes and pointed to a deteriorating economic conditions and a cautious property market as factors for the decision.
The retail giant, which runs the John Lewis department stores and Waitrose supermarkets, stated that a “fundamental shift in the economic conditions” prevented its financial partner, Aberdeen, from raising the necessary funds for the venture originally launched in 2020.
The planned developments were to be located in Bromley, Reading and West Ealing. John Lewis has secured headline planning consent for all three projects and will complete final negotiations with local authorities before determining the sites’ future, which may include sale to property developers.
Image: CGI of the proposed Bromley scheme
Aberdeen confirmed its fundraising difficulties and said it maintains plans to expand its UK residential presence through existing partnerships.
In June 2023, JPL submitted its first planning applications for ‘build-to-rent’ sites at West Ealing and Bromley. It also stated that initial plans for a vacant warehouse site in Reading will be brought forward later that year.
It followed the announcement in December 2022 of the £500m multi-decade joint venture to deliver around 1,000 new homes across the three locations.
‘Build-to-rent’ is a growing sector in the UK where homes are built with the sole purpose of renting to local communities, not to build and sell for a quick profit. It’s much needed to address the growing housing crisis and rising demand for rental homes as private landlords leave the market.
