John Lewis unveils £500 million plan to build 1,000 rental homes - fully furnished with its own products

The John Lewis Partnership has unveiled plans to build 1,000 rental homes on its land over the next decade.

The project is a joint venture with investment firm Abrdn and is part of the company’s nine-year ambition to diversify its business away from the difficult retail sector. It said last year that it wants to make around 40% of its profit from outside retail by the end of this decade.

The £500 million deal with Abrdn, which also owns Waitrose, sets the group on course for its plan to become a major landlord and build a portfolio of 10,000 homes over the next decade.

It would see John Lewis develop and manage the proposed new 1,000 homes in Bromley and West Ealing in Greater London, which would require two Waitrose shops to be redeveloped.

An empty John Lewis warehouse in Mill Lane, in Reading, Berkshire, would also be transformed under the plans. The sites were chosen based on their central location and close proximity to transport links, the group said.

The company will build the one, two and three-bedroom flats, kit them out with John Lewis furniture, and then rent the properties out to tenants as part of its plans to make money from more different areas and reuse old retail sites that are no longer viable for the business.

The group said around half of the 10,000 homes it plans to build will use sites that it already owns and needs to find new uses for.

The project, which is subject to planning permission, includes commitments to affordable housing and sustainability tied to its 2035 net-zero pledge. John Lewis added that its plans would help ease a shortage of 75,000 rental homes in the capital.

A statement said: “We want to create homes that will provide a stable income for the partnership, and moving into housing aligns with our purpose to make a positive difference for our partners, customers and communities”.

Nina Bhatia, executive director for strategy and commercial development, added: “Our partnership with Abrdn is a major milestone in our ambition to create much-needed quality residential housing in our communities.

“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.”