The UK retail company John Lewis have revealed their plans to build up to 10,000 new rental homes over the next 10 years. Partnering with the investment firm Abrdn on a joint venture worth £500 million, the retail giant is taking fresh and new steps to secure their own future and to help thousands of renters in the UK.
Is there a shortage of rental properties in the UK?
Yes, recent figures show that there is estimated to be a shortfall of around 75,000 homes in the London area alone. It has been reported that rental listings are around a third lower than they were two years ago, with prices coming in at over a fifth higher. This surge in rental costs in London especially is causing bidding wars between potential tenants and people are struggling to find suitable places to live.
Even though recent conveyancing news suggests house prices are starting to fall, rental costs have continued to rise, largely due to the cost of living crisis. In their partnership with Abrdn, John Lewis is committing to helping renters find new, affordable and sustainable homes. They will also be hoping that this new initiative will provide a stable income for the John Lewis Partnership after they reported losses of £99 million in the first half of 2022.
How is John Lewis planning to help renters?
In the first phase of development, John Lewis is planning to create 1000 new homes by redeveloping vacant Waitrose shops in West Ealing and Bromley and also demolishing an empty warehouse in Reading to rebuild as housing. These retail units are larger than average in size, with the West Ealing site stretching to 32,000 sq ft and in total, the three sites will combine to create 78, 000 square feet for new and affordable rental apartments.
The planning consultation process is due to start in Reading next year and if planning permission is granted, work will start in Bromley and West Ealing in 2024. Residents should hopefully be able to move into the new apartments by 2027. John Lewis is also hopeful that they may be able to bring these dates forward and they are also assessing other suitable sites for redevelopment. If you are looking to move house in 2023, firms such as Sam Conveyancing can help with every step of the conveyancing process.
What will John Lewis apartments offer to renters?
John Lewis is aiming to build one, two and three-bedroom apartments furnished with high-quality products from their stores and furniture ranges. Nina Bhatia, Executive Director for Strategy and Commercial Development at the John Lewis Partnership, said, ‘Our residents can expect homes furnished by John Lewis with first-rate service and facilities. The move underlines our commitment to build on the strength of our brands to diversify beyond retail into areas where trust really matters.’
She also said that the locations of the new homes have been chosen to be as central as possible to town centres and transport links. Diversifying into the property arena and using their ideally placed locations will hopefully be of benefit to the John Lewis Partnership financially and will help many hundreds of renters in West Ealing, Bromley and Reading areas for many years to come.
