𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The John Lewis Partnership (JLP) has abandoned plans to build around 10,000 rental properties, blaming higher costs and caution in the property market.

The retail firm, which runs the John Lewis department store chain and Waitrose supermarkets, launched its build-to-rent ambitions under previous chairwoman Dame Sharon White in 2020 amid challenging retail conditions.

JLP said at the time that it intended to build 10,000 rental homes, including around 7,000 on sites within its existing property portfolio.

However, on Wednesday, the employee-owned business said it would now withdraw from the venture.

It is understood that a small team of workers will be impacted by the withdrawal, and are expected to be offered redeployment opportunities elsewhere in the business.

The retail group said the decision to launch the venture was “based on a very different financial environment”.

In the following years, the plans have been put under pressure from “higher interest rates, inflationary pressures and a more cautious property market”.

JLP said the venture “no longer” meets its investment criteria as a result.

It indicated the move is part of a wider strategic decision to “refocus on the partnership’s core retail brands”, under current boss, former Tesco executive, Jason Tarry.

Investment will focus on its retail operations, with the group currently investing around £800 million into John Lewis to improve its experience for shoppers, while a £1 billion investment programme is also taking place at Waitrose.

The build-to-rent operation has already progressed with three planning applications for around 1,000 homes in Bromley, West Ealing and Reading.

JLP said it will continue to fulfil its existing management contracts as part of a transition process.

It is understood the group will look to complete the consent process on its existing developments, but is then likely to sell this consent to potential developers.

A JLP spokesman said: “The John Lewis Partnership has today announced its decision to withdraw from its ‘Build to Rent’ property business.

“We’re proud of what we’ve achieved in terms of progress with three planning applications and managing third party build-to-rent homes for residents to a high standard.

“We will fulfil our existing management contracts at four BTR sites as part of a responsible transition out of the business.”