John Lewis has called on the government to remove planning regulations that prevent homebuilding after taking its first steps into the housing market.
John Lewis recently gained planning permission to construct 350 flats and affordable housing atop a Waitrose store in the London Borough of Bromley.
However, the department chain claims they faced significant delays in getting their application approved and have proposed planning reforms to help "avoid lengthy planning appeals".
John Lewis gains planning permission for 350 flats and homes
John Lewis's planning application is for the construction of 350 residences on top of an existing Waitrose store in outer London.
The development includes three residential blocks ranging from 10 to 24 floors, which will consist of around 320 "energy-efficient" rental flats and 30 affordable homes.
The project is located on a four-acre site near Bromley South railway station, and it aims to retain the Waitrose supermarket, part of the John Lewis Partnership, at ground level while adding significant new housing above it.
Why is John Lewis moving into the homebuilding market?
John Lewis's move into the homebuilding market is driven by the strategic advantage of rental housing, which allows for quicker project launches without the need for property sales.
Katherine Russell, Director of BTR (build-to-rent) for the John Lewis Partnership, emphasises 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 venture is financially backed by a £500 million joint project with asset manager Abrdn, focusing on constructing 1,000 homes supported by pension fund investments. Katherine Russell says John Lewis plans to independently manage the rental properties, ensuring long-term control over these assets.
Despite earlier decisions to scale back profit targets from build-to-rent initiatives, John Lewis remains committed to property development as a core component of its strategy, aiming to revitalise its retail business.
This approach aligns with broader industry trends, as other major retailers like Asda have also begun integrating housing developments into their business models, recognising the potential for diversification and growth in the residential market.
Despite gaining planning approval, John Lewis representatives have called for planning reforms, noting the delays they saw in their planning application.
They believe "cutting red tape" and utilising billions in unused development levies would boost investment in new housing.
John Lewis's Build to Rent projects have faced significant delays, with their first project in Bromley only being approved after two years. Katherine Russell suggested that tax breaks should be given to developers who start construction immediately, addressing the issue of "land banking," where companies delay development despite having planning permission.
She also argued that these measures would help the government meet its target of building 1.5 million new homes in five years by accelerating homebuilding.
Katherine Russell said: “If the UK is serious about being a hub for innovation and productivity, then people in all industries – such as scientists, tech founders, teachers and nurses – will demand high quality housing.
“Second, brownfield development zones – where height, use and other elements can be pre-agreed – would create greater certainty that policy-compliant schemes are assessed on their merits and their broader benefits for the greater good. We need to be pragmatic that there might be some downsides from development, but still consider the considerable social and economic advantages quality housing offers. These solutions have been successfully used across the US and could help avoid lengthy planning appeals.”
The new Labour Government have outlined their commitment to "Get Britain Building" and prioritised brownfield sites for delivering houses and has claimed they will address issues faced in the planning system.
