John Lewis has received approval to build homes, marking a historic first for the renowned department store chain. Bromley Council granted permission for the construction of 353 rental flats above an existing Waitrose store in the London borough on Thursday.
This development is a significant milestone for John Lewis, which has been striving for years to enter the housing market as part of its strategy to diversify its income streams. However, the project has faced criticism for not meeting its initial promise of delivering a substantial number of affordable homes.
The “energy efficient” flats in the 24-storey Bromley development will offer a mix of one to three-bedroom units, and the existing Waitrose store will be renovated as part of the project. Despite the positive aspects, campaigners have voiced concerns over the affordability of the new homes. Less than 10% of the flats will be classified as ‘affordable’, meaning their rental rates will be set at 80% of the market value. The remaining flats will be rented at full market rates.
Initially, John Lewis committed to making 35% of the homes affordable, aligning with targets set by Bromley Council and the London Mayor. However, the company has since reduced this figure, citing profitability issues. Local Liberal Democrat councillor Julie Ireland criticized the reduced number of affordable homes as “frankly derisory” and expressed concerns about the development’s height and its potential impact on local traffic and public transport.
John Lewis anticipates that the new development will increase council tax revenues and local spending by £70 million over the first decade. The company also highlighted that it had received 147 letters of support for the project, outnumbering the objections.
Investment firm abrdn, partnering with John Lewis on the development, emphasized that the housing project would serve as a catalyst for town center regeneration and broader community investment. Looking ahead, John Lewis and abrdn plan to construct a total of 1,000 new homes across three sites, including the Bromley development.
John Lewis first announced its intention to venture into the housing market in 2020 as a response to the challenges posed by the rise of online shopping, which has led to store closures and job cuts for many traditional retailers. The company aims to generate 40% of its profits from non-retail activities by 2030.