John Lewis submits £500m London planning bid for 800 homes – but questions remain about affordability
John Lewis is pressing on with its shift away from the high street and into residential property by submitting initial planning applications for new ‘build to rent’ homes in the capital
The hard-hit retailer submitted proposals for nearly 800 rental homes on London sites in West Ealing and Bromley, with plans for a site in Reading to be brought forward later.
Last December the partnership announced a £500m joint venture with abrdn to build approximately 1,000 new homes across the three locations.
Meanwhile, London is currently experiencing a housing crisis, with property prices impacted by higher borrowing costs due to 13 consecutive interest rate hikes.
Those unable to buy a house have to rent, but prices have increased substantially during the cost of living crisis, in part due to a shortage of supply.
Nina Bhatia, executive director for strategy and commercial development, said John Lewis has “worked closely with local communities to understand their needs”.
“Working with our partner abrdn, we want to bring much needed new homes with a community feel to Bromley and West Ealing, which will include the full commitments to affordable housing”, Bhatia added.
According to John Lewis, just over a third of the 428 new homes in West Ealing and 353 in Bromley will be “affordable and targeted at key public sector workers such as nurses or teachers”.
When John Lewis was approached about the price of the properties, a spokesperson told CityAM that it was too early to say what rent could cost but “the Bromley homes will be available at 100 per cent London Living Rent and will be targeted to key workers”.
“The West Ealing homes will be offered at a range of Discounts to Market Rent with a significant proportion available at London Affordable rent”, they said.
The government say London Living Rent homes are targeted at middle-income households who are saving to buy a home through shared ownership.
The developments include public spaces, landscaped surroundings, flagship Waitrose shops, improved pedestrian and cyclist access, resident lounges, dining areas, roof gardens, flexible work spaces, and a gym.
Bromley and Ealing councils were contacted for comment.
‘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.
The UK’s growing build-to-rent sector focuses on providing rental homes to address the housing crisis and meet the rising demand as private landlords exit the market.