John Lewis is targeting suburban locations and southeastern suburbs as he moves ahead with plans to build 10,000 rental homes despite warnings that the housing market is cooling.
The John Lewis Partnership, which also owns Waitrose, said it will build supermarket accommodation in Bromley and West Ealing in Greater London, as well as replace a vacant John Lewis warehouse in Mill Lane, Reading.
It is part of the company’s plans to build 10,000 homes on site over the next few years, which John Lewis has previously said is based on its “social purpose” values to address housing shortages in the UK.
Nina Bhatia, John Lewis ’chief strategy officer, said:“ Helping to build homes has always been at the heart of what we do and now we have a unique opportunity to use our experience and skills in new ways to deliver new products. housing needs “.
The move comes despite warnings that the housing market is cooling and that lower-income households will be affected first and hardest in the event of a recession, with the risk of increasing delinquent tenants.
The pandemic has been fueled by an exodus of private property owners from the real estate market, as demand for outdoor space and homes in suburban locations during confinements has driven up prices.
Ministers have said the government has a “duty” with the next generation to build more homes.
John Lewis said local residents of Bromley and West Ealing will be invited to a public consultation over the next few months to discuss the move, while those living in Reading will be asked to attend later this year.
JLP added that detailed designs will not be shown until the end of the year to give residents a chance to help shape the plans.
The houses are expected to include a concierge service and a dedicated rental service for John Lewis products, while some could feature their Little Waitrose convenience stores, as well as fitness studios and rooftop gardens.
John Lewis’s push into the rental housing market comes as he works to ensure that 40% of his profits are generated outside of retail by 2030.
The unrest in the main street, as well as the aggressive prices of online rivals, have forced Dame Sharon White, who became the first woman president of John Lewis in February 2020, to take drastic measures by closing shops, eliminating the bonus of staff for the first time since 1953 and eliminating about 1,500 jobs.