Planning overhaul sought by John Lewis following a two-year approval delay
John Lewis Enters the Housing Market with Energy-Efficient Development in London
John Lewis, the well-known British retailer, is making a significant shift in its business strategy by venturing into the housing market. The company has received planning permission to construct 350 residences on top of an existing Waitrose store in the London Borough of Bromley.
The development, situated on a four-acre site near Bromley South railway station, includes three residential blocks ranging from 10 to 24 floors. The project will house around 320 rental flats and 30 affordable homes. The Waitrose supermarket will remain at ground level, with new housing added above it.
This move is part of John Lewis's response to the changing retail market. By diversifying its business, the company aims to generate stable, long-term income streams through real estate, while also contributing to addressing the UK's housing shortage.
Katherine Russell, Director of BTR (build-to-rent) for the John Lewis Partnership, emphasizes that building for rent enables new developments to come to life more swiftly, providing a steady revenue stream while utilising the company's extensive real estate assets.
The new Labour Government has outlined their commitment to "Get Britain Building" and prioritizes brownfield sites for delivering houses. John Lewis's development falls under this category, making it an ideal solution for addressing the housing shortage.
John Lewis is calling on the government to remove planning regulations that prevent them from entering the housing market. They propose tax breaks for developers who start construction immediately, addressing the issue of "land banking."
In addition, John Lewis suggests planning reforms, including cutting red tape and utilising billions in unused development levies, to boost investment in new housing. Katherine Russell believes that these solutions, successfully used across the US, could help avoid lengthy planning appeals.
Moreover, the development aims to provide energy-efficient housing, aligning with the government's goals to reduce carbon emissions. John Lewis plans to independently manage the rental properties, ensuring long-term control over these assets.
The John Lewis venture is backed by a £500 million joint project with asset manager Abrdn, focusing on constructing 1,000 homes. Katherine Russell argues that considering the social and economic advantages of quality housing is crucial, even if there might be downsides from development.
This move by John Lewis is a step towards a more diverse business model, demonstrating their commitment to addressing the UK's housing shortage while also generating sustainable income streams.
