John Lewis’ plans to become a major residential landlord have moved a step closer, with the submission of a planning application to develop more than 200 residential units in Reading.
The retailer’s proposals, which are currently with Reading Borough Council for approval, consist of repurposing brownfield land, which John Lewis previously used as a delivery depot. If approved, the partnership will commit £80m to demolish the old distribution warehouse and build 215 Build to Rent flats.
Stacy Eden, national head of real estate at RSM UK, commented: “John Lewis’s plans to build 215 rental flats by transforming an unused distribution warehouse is a great example of revitalising brownfield land. If approved by local authorities, this initiative will help to alleviate some of the growing housing pressures in Reading by providing much-needed rental housing stock, helping to tackle the UK’s supply and demand imbalance.
“However, there remains key challenges in terms of planning reform, so the government’s focus on accelerating the planning system and revising the National Planning Policy Framework will hopefully ensure that the development can be started sooner rather than later.”
John Lewis initially announced plans to build 10,000 new homes on land it owns across the UK in mid-2021.
The new homes will be build over a 10-year period on land currently used as car parks and above Waitrose supermarkets.
The company has reportedly already found space for 7,000 rental homes, and plans to submit planning applications early next year.
Eden added: “The Build to Rent market is a niche sector experiencing high demand. This is due to many landlords selling their properties in recent years and first time buyers struggling to get on the housing ladder, driven by the rise in interest rates in 2022/23, high house prices, and lack of incentive from government. Professional build-to-rent developments therefore help to effectively address this demand.”
