LATEST: Has the John Lewis rental property plan stalled?

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John Lewis has insisted it is still focused on becoming a major residential landlord, despite first announcing the idea nearly 18 months ago.

Its Partnership Plan aims to transform the business and promises that in this financial year it will invest in John Lewis shops, its website and distribution as well as “continuing to develop and progress our property rental proposition”.

John Lewis first revealed plans to build 10,000 rental homes over the next decade back in October 2020 but senior leadership roles for the project were still being recruited for late last year, according to one leading property jobs agency.

The retailer identified space in its car parks, above Waitrose supermarkets and near distribution centres for about 7,000 rental homes ranging from studio flats to four-bedroom houses where tenants would have the option of renting accommodation that is fully furnished with the chain’s own household furnishings, or providing their own.

Further detail

But the lack of any further detail since then seems to indicate that the plan is proving to be more complicated than first thought.

The beleaguered retailer suffered substantial pre-tax losses of £26m in the last financial year (compared to its £491m loss the previous year) despite profits rebounding by 38% off the back of its highest ever sales of £4.93bn, which increased 8% like-for-like.

Staff bonuses have been reinstated as a result, but John Lewis has admitted its profit margins were hit by restructuring and exiting property leases as it sold off eight stores and a delivery hub, as the business focuses on online shopping.

If they ever get off the ground, the initial residential developments are planned for South East England, but the partnership believes there are opportunities across the country.

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